Darty Full-Year Profit Slumps 66% on Lower Prices, Turkey Losses
Darty Plc (DRTY), the owner of France’s largest consumer-electronics chain, said it expects another challenging year after reporting annual profit declined as it lowered prices and losses persisted in Turkey and Spain.
Adjusted pretax profit declined to 26.4 million euros ($35 million) in the year ended April 30, the retailer said today. That compares with the 26.7 million-euro average estimate of nine analysts compiled by Bloomberg. The retailer raised its final dividend to 2.625 cents a share.
Darty, whose Chief Executive Officer Regis Schultz took over in April, said he will improve profits by focusing on a wider range of entry-priced products, an enhanced digital offer with in-store click-and-collect points, more exclusive own-brand ranges and will complete 50 million euros of annual cost savings a year earlier than planned by fiscal 2015. The retailer sold its Italian unit and closed its Spanish business in the past financial year to curb losses.
“The year ahead will be challenging and we anticipate that market conditions and product mix will continue to put pressure on margins,” Schultz said in the statement. “We aim to mitigate this through our cost saving programs.”
The shares fell 2.3 percent to 62.5 pence in London trading yesterday. They have risen 9.7 percent this year.
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