Carphone Warehouse in Oxford St, London

Nearly 100 Carphone Warehouse stores are to close this year as the retailer’s new boss issued a profits warning and pledged to take action to tackle challenges in the mobile phone market.

Dixons Carphone said it will shut 92 Carphone Warehouse standalone stores this year as it grapples with changing consumer habits.

Shares in the group, which have already lost 30% of their value in the past year, tumbled by 20% as it warned profits would fall well below City forecasts this year, at £300m. Analysts had been expecting about £387m.

The group said hard-pressed consumers were holding on to older mobile devices for longer and going “sim-only”, which has…