Britain's electrical goods retailer Dixons beat forecasts with higher Christmas sales on Wednesday, enjoying demand for flat screen TVs and digital cameras, and forecast "satisfactory" year results.
The owner of Dixons and Currys shops, which shocked investors with a profit warning this time last year, said sales at stores open more than a year rose five per cent in the eight weeks to January 10, including a four percent rise in the UK.
Analysts were expecting growth of two to three per cent, with UK sales flat to up 2.8 per cent.
However, gross margins in the UK were in line with last year, when they posted a steep fall, the owner of PC World and The Link mobile phone shops said in a statement.
"Despite continuing uncertainty over the economic environment in Europe, the group is well placed for a year of further progress," Chairman Mr John Collins said.
Dixons also said profit before tax and goodwill rose nine per cent to 105.7 million pounds ($195.2 million) in the 28 weeks to November 15th, in line with analysts' expectations.
Many of Britain's retailers have had a tough Christmas as a November hike in interest rates exacerbated a slowdown in consumer spending growth. Electrical goods shops have had an extra challenge from stiff competition from supermarkets.
Dixons shares have performed in line with the UK retail sector over the past year. They closed at 145-3/4 pence on Tuesday, valuing the business at about 2.8 billion pounds.