Dixons Carphone is expected to report much-weaker half-year profits next week as the electrical and telecoms retailer feels the impact of falling consumer confidence and a weaker mobile phone market.
PA reports that a consensus of City analysts expect the firm to report a colossal 56% fall in underlying pre-tax profits to £63m on Wednesday.
Like-for-like sales are predicted to have risen by just 1% in the UK in the second quarter, compared with 4% in the first three months of the year, a significant slowdown.
The results will come after Dixons Carphone warned in August over a Brexit profit hit as the soaring cost of new mobile phones means people are holding on to older models for longer.
The electricals giant said the pound’s collapse following the country’s decision to quit the EU has meant an increase in shop prices for mobile devices and bemoaned “challenging conditions”.
As a result, Dixons Carphone expects headline pre-tax profit for the full year to be in the range of £360m to £440m.
Dixons Carphone also said it would take a £10m to £40m hit from changes to EU roaming legislation.
Andrew Porteous, analyst at HSBC, said the firm is in need of a “strategic reset after a tumultuous year”.
He added: “Dixons Carphone undoubtedly faces challenges from an uncertain UK consumer outlook and major changes in the mobile market.
“In addition, its core UK electricals market is inarguably cyclical, which is a concern as the UK consumer outlook undoubtedly faces challenges in the near term.”