Dixons Carphone in profits warning

● Shares shed nearly 20% as retail group flags sizeable shortfall

at Hargreaves Lansdown, said: “The old saying that sales are vanity, but profit is sanity sums up the issues at Dixons just now.

“The top line might still be growing but the group is struggling to translate rising sales into higher profits.”

Neil Wilson, chief market analyst at Markets.com, branded the profits warning “nasty”.

The company said that no jobs will be shed as part of the ramped-up closure programme at Carphone Warehousas as employees will be offered the chance to move to larger outlets nearby.

However, the outlet closures add to a torrid half-year for much of the high street, with many retailers announcing bricks and mortar retrenchment.

One of the most high-profile has been Marks & Spencer, whose recent annual profits were dragged down by £321m in costs linked to plans to close 100 or more under-performing stores by 2022.

Others to announce store closures include Carpetright, Mothercare, Byron and Debenhams. Baldock added that he is renegotiating contracts at Carphone Warehouse with the aim of “improving our business model”, while also pointing to a difficult electricals market.