A proper financial management strategy is one of the key tools for successful marketing and financial performance. In general, financial success is closely linked with the principles of financial management performance, hence, it is the key aspect of a company’s performance that defines the effectiveness of financial resource allocation, financial flow management, and share price control effectiveness. The aim of this paper is to analyze the financial management principles of the Dixons Retail PLC, including financial information, income statements, cash flow statements, and balance sheets. The role of financial management can not be overestimated, however, wrong actions may cause the failure of the entire financial structure. The instance of Dixons Retails clearly reveals the instance of improperly implemented financial management strategy, as regardless of the stable share price for the recent three years, the financial benefits of the company have decreased essentially by November 2010. Investment values of the company have changed sufficiently. In general, there are several factors: the world credit crisis 2008 became the important impulse for share price failure. Another factor is the issuing of the additional share volumes for the share market, which caused the depreciation of the shares in general (December 2008, 9.49) that became the reason for the investment shortage, as shareholders wished to save their reserves, and preferred to sell the shares. Actually, the share price returned to the previous values in three months (April 2008, 43), however, the values of the years 2006 – 2007 (the highest value ‑ 217.75) are unachievable. Furthermore, these changes promoted slight changes in the financial structure of the company, as there was a necessity to consolidate the financial reserves of the entire group. These changes are associated with the net funds. They were restructured for adapting the company for the debt financing, as the company is unable to operate with the equity-based structure at the moment (net fund values: May 2009 – £ 50.1 million; May 2010 ‑ £ 477.5 million debt) (DSG International, 2010) As for dividends paid, 2010 reports do not involve the information required, however, the estimates are not very satisfactory, as the borrowings have 75% increased in comparison with 2009. The 2009 dividend payments totaled £ 60.3 million, while the 2008 rates were £ 160.8 million. Market Values and Financial Data of the Company                             3 May 2008                                   2 May 2009                                     1 May 2010 Price                       69.25                                        42.25                                          31.70      Number of Shares            23 659 300                                   15 573 400                                     11 575 500                             2008 – 2009                                  2009 – 2010                                   Dividends Paid              £ 160.8 million (10.2 pence loss per share)  £ 60.3 million (1.7 pence earnings per share)                             2 May 2009                                   1 May 2010                                    Total Shareholders’ Equity  – £ 219.4 million                            £ 59.8 million                                Market value                £ 44.3 million                               £ 44.3 million                                Investe