Currys upgrades profit guidance despite sales slip

In the 10 weeks to January 6, group like-for-like sales slipped by 3% compared with the same period last year, but the electricals giant said it also delivered “robust profits”.

Like-for-like sales in the UK and Ireland fell by 3%, while sales in the Nordics and Greece declined by 2% and 4% respectively.

The group said stable gross margin and continued cost savings helped deliver profits, while there was also strong growth in all services.

Currys also saw strong sales in mobile, but these were offset by “weaker trends in TV and computing”.

The electricals retailer has now upgraded its group adjusted profit before tax to be “ahead of consensus expectations” at £105 to £115m.

The group also expects to receive final clearances for the disposal of its Greek business to complete in the first quarter of 2024. 

Currys expects to finish the financial year in a net cash position.

Group chief executive Alex Baldock said: “We’ve had a successful peak trading period, for customers who are more satisfied than ever, and for profits and cash flow. Our markets may be no easier, but we now expect full-year profits to be above consensus expectations.

“In the UK and Ireland, we’ve kept up our encouraging momentum, in particular selling more of the services that boost margins and build customers for life.

“We’re also getting the Nordics back on track after a disciplined peak on margins and costs. In all markets, we’ve taken big strides in customer satisfaction through the hard work and expertise of our more engaged colleagues.

“We’re in a healthy financial position and our strategy is delivering a consistently improving customer proposition. As consumer confidence improves, we’ll be well placed to build on these strong foundations, to benefit shareholders as well as colleagues and customers.

“Thank you to all my colleagues who are making this possible – you’re building an ever-stronger Currys that helps everyone enjoy amazing technology.”