UK sales help strengthen Currys business, despite ‘weak’ international performance

Currys has today reported that “a solid performance” in its UK and Ireland business has helped to offset weakness in the international segment.

In its latest trading update for the 10 weeks ended 7 January, the electrical retail giant said UK and Ireland like-for-like revenue was down five per cent, but profits were “better than expected” thanks to gross margin increases and continued cost savings.

Sales were strong in domestic appliances and mobile, but this was offset by weaker consumer electronics and computing, the report revealed.

Interestingly, Currys stores outperformed its online counterpart in the 10-week period with customers “making the most” of its omnichannel offering.

In the international business, like-for-like revenue fell seven per cent and profits were below forecast due to the Nordics region, where it saw a market-driven sales slowdown and continued pressure on gross margin. The retailer said sales declined in all categories except small appliances.

The company’s full-year guidance remained unchanged, assuming no further unexpected macroeconomic deterioration. Thanks to the “continued strengthening” of the UK and Ireland business, Currys expects adjusted pre-tax profit of between £100m and £125m.

Group Chief Executive of Currys, Alex Baldock, said international markets remain tough and that the business continues to face into “intense, but temporary, market pressures”.

More generally, he added that the company’s transformation is “visibly succeeding”…

“This peak has again shown Currys to be the number one choice for all things tech. Looking ahead, the results in the UK&I show that we’re on the right path – we’re excited about our growing momentum, and we intend to build on it.”