Currys annual profit to exceed expectations despite drop in sales
Electricals retailer Currys has said its full year profit is set to come in ahead of expectations despite a drop in sales in its peak trading period.
In the 10 weeks to 6 January, the retailer’s UK and Ireland revenue declined by 3% while sales in the Nordics and Greece fell by 2% and 4% respectively. Strong trading in the mobile category in the UK and Ireland was offset by weaker sales in TV and computing.
Alex Baldock, Currys group chief executive, said: “We’ve had a successful peak trading period, for customers who are more satisfied than ever, and for profits and cashflow.
“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.”
Currys said it delivered robust profits in the UK and Ireland over its peak trading period through stable gross margin and continued cost savings. It now expects its full year group adjusted pre-tax profit to come in at between £105 million and £115 million, which is above current consensus expectations of £104 million.
Baldock said: “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.”
Currys expects the disposal of its Kotsovolos business in Greece to complete before the end of its financial year.