Another day, another plunge of a FTSE-listed company.
Cell phone retailer Dixons Carphone (DXCPY) shares plunged more than 27% in the first minutes of trading, prompting a halt in trading, after it warned of a slowdown in the U.K. mobile phone market.
The retailer said conditions in the U.K. mobile phone market were challenging and blamed the likes of Apple (AAPL) - Get Report and Samsung (SSNLF) for not releasing innovative products and holding off on releases, meaning consumers were holding off on getting new handsets.
Shares were down 29.69% changing hands at 159.62 pence at 8:30am in London after trading resumed.
"Currency fluctuations have meant that handsets have become more expensive whilst technical innovation has been more incremental," CEO Seb James said in a trading update for the 13 weeks ended July 29. "As a consequence, we have seen an increased number of people hold on to their phones for longer and while it is too early to say whether important upcoming handset launches or the natural lifecycle of phones will reverse this trend, we now believe it is prudent to plan on the basis that the overall market demand will not correct itself this year."
Full-year profits will fall to between £360 million and £440 million compared with the £501 million posted last year, the retailer said.
U.K. retailing has come under pressure since the June 23, 2016 vote to leave the European Union. Rising inflation due to the fall in the value of the pound has seen real wage growth fall.
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