Britons Making Bread, Getting Fit in Lockdown Boost Dixons Sales

(Bloomberg) --

Britons are finding new ways to keep busy and stay healthy as they are confined to their homes, providing a sales boost for electronics retailer Dixons Carphone Plc.

“In April, we have seen strong demand for home office equipment including computers and home networking as people work and communicate remotely,” Dixons said in a statement as it reported accelerating online sales and an additional credit facility. “In kitchen products, refrigeration and food preparation including bread makers have sold particularly well.”

Britons have been in a government-imposed lockdown since March 23 due to the Covid-19 pandemic, with travel out of the home restricted to food shopping and exercise. As well as gaming equipment and televisions, Dixons said customers have also been buying personal-care products and fitness trackers.

While the closure of stores due to the pandemic meant like-for-like sales of electrical products fell 16% in the U.K. and Ireland during the five weeks ended April 25, online sales surged 166% over the same period, Dixons said Wednesday. The stock jumped as much as 17%, the most in the FTSE 250 Index.

Despite the strong online sales of recent weeks, RBC Capital analyst Richard Chamberlain doesn’t think this will make up for the lost store sales. He has an underperform rating on the stock, the lone bear among analysts tracked by Bloomberg.

“The strong sales in kitchen appliances, office appliances, TVs and gaming is due to demand brought forward from later this year,” Chamberlain wrote in a note. “There is likely a hangover to come.”

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