Electronics retailer Dixons Carphone (LON:DC.) has said that it will close more than 90 stores today, following a profit warning for the 2018/19 financial year. The company said that margins were likely to be squeezed due to low inflation limiting the growth of network commission payments and increased costs due to rising wages. Profits before tax are expected to drop to around £300 million from £382 million for the current year.
CEO Alex Baldock said: “Nobody is happy with our performance today. We’re getting on with it, through a new leadership team and structure that’s promoted top talent, cleared away unnecessary layers and silos, and started to speed up decision-making. We’re already giving new impetus to areas crucial to our transformation such as data and analytics, marketing, digital, services and technology”.
Shares in Dixons Carphone stood at 192.15p at 12:45 BST, a 17.67% drop from this morning’s opening price.