Mobile phone troubles to drag on Dixons Carphone

The firm has already warned it may be forced to close stores
The firm has already warned it may be forced to close stores

Festive trading figures from Dixons Carphone on Tuesday are set to show ongoing woes in its mobile phone arm as the retailer battles to halt sliding sales in the division.

The group warned last month that it may look to shut stores after being hit by a 3% fall in half-year sales at the troubled mobile division, which contributed to a 60% plunge in half-year profits.

It parachuted deputy CEO and former Carphone Warehouse boss Andrew Harrison into the unit as chairman just before Christmas as part of efforts to arrest falling sales.

Analysts are expecting solid electricals sales to help offset the mobile phone difficulties over the festive season, with the group already confirming record trading on Black Friday.

It is thought the delayed launch of the iPhone X may have helped provide a much-needed fillip to the group, although reports have suggested mixed demand for the new model.

Analysts are forecasting a 2% rise in overall UK like-for-like sales over the 10 weeks to January 6, which would mark a slowdown on the 3% growth in the second quarter.

It is also sharply lower than the 6% sales growth over the previous festive season.

The high street chain saw interim profits tumble to £61 million, while trading was dragged down by a 3% fall in comparable sales at its mobile phone division.