DSG International , Europe's No. 2 electricals retailer, met forecasts for first-quarter sales with trade boosted by shopper spend on TVs to watch the soccer World Cup and on Apple iPads.

DSG, which runs the Currys and PC World chains in the UK, UniEuro in Italy, Elkjop in Nordic countries and Kotsovolos in Greece, said on Thursday it remained cautious about the economic outlook given macro headwinds but was well positioned.

Sales at stores open over a year rose 3 percent in the 12 weeks to July 24, compared with analyst forecasts of a rise of 2-4 percent.

Gross margins across the group were up 0.1 percent.

The firm said its UK operations gained market share, while its store refit programme was on track.

DSG is just over two years into a turnaround plan that has focussed on selling underperforming businesses, cutting costs, revamping stores, opening larger stores and improving product ranges and customer service.

Shares in the firm have lost 10 percent of their value over the last month on fears over the strength of consumer spending going forward, underperforming the UK general retailers index <.FTASX5370> by 6 percent.

Investors are also concerned about competition from supermarkets and pure play Internet retailers and the arrival in Britain of U.S. electricals market leader Best Buy .

The stock closed at 24 pence on Wednesday, valuing the business at 870 million pounds.

(Reporting by James Davey; editing by Mark Potter)

United kingdom