Dixons’ sales soar thanks to iPad launch and major fillip from Harrods venture

Dixons Retail has smashed City forecasts by delivering a surge in UK sales in its fourth quarter, driven by “stonking” sales of Apple's latest iPad and a stunning launch of its concession in the department store Harrods.

The owner of Currys and PC World also benefited from the recent woes of its main rival Comet, which was acquired by the investment firm OpCapita for a token £2 in February, and the United States giant Best Buy closing all its 11 UK stores in January.

However, there was a north-south divide at Dixons, which has more than 1200 stores in 13 countries, as strong sales in the UK, Nordics and central Europe contrasted with tanking revenues in the crisis-stricken economies of Italy and Greece in southern Europe.

Dixons posted a 8% rise in like-for-like sales in the UK and Ireland over the 16 weeks to April 28, although they were down by 4% over the 52 weeks.

Sebastian James, who replaced John Browett as chief executive in February, said: “Some of our competitors have become somewhat introspected as they sort out their own problems.”

Dixons also enjoyed barnstorming sales, “ahead of the market”, of the new iPad, which was launched in March, said James.

“We had a stonking launch and sold more iPads [third generation] than iPad 2.”

The group, which has 528 Currys and PC World stores in the UK, also revealed jaw-dropping figures from the concession it introduced in Harrods in March. James said that 2% of customers account for half of its revenues in the Knightsbridge store. Last week it sold a set of headphones for £1700.

Group sales at Dixons rose by 4%. The group sales were up by 5% on an underlying basis over the 16 weeks.

The electricals retailer has guided towards pre-tax profits of between £65 million and £70 million for the year that has just ended.

Shares in Dixons rose by 0.5p, or 3%, to 18p.