Kesa posts £7.9 million loss
Electricals retailer Kesa has reported a pre-tax loss of 9.2 million (£7.9 million) for the six months to October. This compares to a profit of 32.4 million (£27.9 million) a year earlier.
Group revenue fell 7.9% to €2.57 billion (£2.2 billion) down from €2.7 billion (£2.39 billion) in 2010.
Gross margin grew by 10 basis points as the group pursued a strategy of driving sales of higher margin small appliances and accessories.
Sales at the group’s Comet stores fell 18.6% in the period. Last month the group announced that it had agreed to sell the 248 strong chain of stores to private investment firm OpCapita for a nominal £2.
Group chairman David Newlands said: "Market conditions are becoming more challenging across all our markets.
"I am pleased therefore that we have reached agreement for the disposal of Comet, subject to shareholder approval. The disposal is expected to improve significantly the group's financial strength."
Sales at the group's Darty France stores fell 3.7%. Last month Kesa said that unless market conditions improved, Darty France's retail profit in 2011/12 would fall below the previous year's €149 million.
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