Electrical goods retailer DSG International reported a smaller-than-expected fall in quarterly sales and said the trading outlook had improved slightly.
The retailer, which operates in Ireland as Currys and PC World, said sales at stores open for at least a year fell 6 per cent in the 16 weeks to August 22nd, approximately the first quarter of its financial year.
In the UK and Ireland the value of sales in local currency fell 14 per cent. That followed an 11 per cent drop in the second half of its 2008-09 year.
"We're seeing some evidence that in fact it's not going to be quite as bad as some of the more pessimistic scenarios around the economy, although we're still in recession," chief executive John Browett told reporters.
"The outlook now looks less negative than it did in the spring," he said on a conference call.
Like-for-like sales at DSG's UK computing businesses fell by 15 per cent, hit by a plunge in demand for computers from businesses.
But underlying sales in Nordic countries rose and fell less than expected in southern and central Europe.
DSG's shares slumped by up to 90 per cent last year as a drop in discretionary spending raised fears it might breach banking agreements, but the group allayed those fears when it raised over £300 million in a share sale earlier this year and renegotiated borrowing rules.
That also gave it cash to step up a store revamp programme to increase product ranges, add more demonstration and interactive areas and improve customer service.
Mr Browett said he remained cautious about the trading outlook, but thought receding fears about financial market instability and unemployment would outweigh the rise in sales tax due at the beginning of 2010.
"(There are) a number of things where people feel much more confident about their own personal position, and also they won't be worried about whether they're going to lose all their money sitting in the bank," he said.
DSG said it had agreed to sell its loss-making eight Electro World Poland stores to IDMSA Brokerage House, which is working with Polish retailer Mix Electronics, for €1.
That follows the sale of stores in Hungary and the closure of some shops in Sweden and Finland as DSG sheds underperforming businesses in markets where it is not a major force.
Reuters