Dixons loses spark with sales kept down by freeze

Dixons UK sales fell 4% over the 12 weeks to last weekend despite a late surge in demand for 3D TVs and Apple iPads ahead of the rise in VAT.

Shares in the electrical retailer slumped 9%, falling 2.17p to 21.56p.

Chief executive John Browett blamed half the fall in sales on the bad weather and still described the UK performance as solid.

The Nordic countries did well but Greece and Spain remained tough. Total group sales were down 2% and margins down by 0.2%.

Dixons Retail, which runs the Currys and PC World chains as well as UniEuro in Italy, Elkjop in Nordic countries and Kotsovolos in Greece, said it expected underlying pre-tax profit of between £100 million and £110 million this year.

"We remain cautious about the economic outlook across our markets," said the firm.