Currys increases profit outlook despite lacklustre Christmas sales

Currys said like-for-like revenue in the UK and Ireland business fell 3% in the 10 weeks to January 6.

Appliance and electronics retailer Currys forecasted full-year profit ahead of market expectations after stable gross margins and cost savings offset a fall in underlying sales over the Christmas trading period.

The seller of cookers, fridges, washing machines, TVs, computers and mobile phones, said it now expected a full year 2023/24 adjusted profit before tax of £105m (€122m) to £115m.

Prior to the update, analysts were on average forecasting £104m, down from the £119m made in 2022/23.

Consumers across Europe are grappling with persistent inflation and high borrowing costs.

Currys said like-for-like revenue in the UK and Ireland business fell 3% in the 10 weeks to January 6, with strong sales in mobile, offset by weaker trends in TVs and computing.

In addition to stable gross margins, that were helped by strong growth in services such as credit and repair schemes, profits benefited from continued cost savings.

In the Nordics division, like-for-like revenue fell 2%, but gross margins were up strongly.

"We're in a healthy financial position, and our strategy is delivering a consistently improving customer proposition," CEO Alex Baldock said.

"As consumer confidence improves, we'll be well-placed to build on these strong foundations."

Shares in Currys have fallen 24% over the past year.

• Reuters