Profits down at Comet

News

Ben Furfie Mar 19 2008, 12:13pm

Retail profits down by 4.1 per cent despite strong sales of laptops and flat screen televisions

Profits at the second largest electrical retailer in the UK fell in 2007, despite continued strong sales of laptops and flat screen televisions.

Profits at the retailer were down 4.1 per cent to £44.2 million despite the one off sale of a store for £3.5 million last year. Total sales at the retailer were up 3.3 per cent at £1.73 billion.

Comet's total store count reached 251 after it added three new stores to its portfolio during 2007.

The news came as the chief executive of Comet's parent company, Kesa warned that trading condition were becoming progressively worse. Speaking to investors, Jean-Noel Labroue warned: "As consumer confidence declines, we are anticipating difficult trading conditions ahead."

Labroue added that the group will now become "more focused than ever" on increasing margins and cutting costs.

Overall sales at the group were up by 10.6 per cent to £4.98 per cent thanks in part to the sale of its French furniture and electricals arm, BUT.

Sources:
Press Association
Forbes