Electrical goods retailer Currys have revealed the damaging nature of the cost-of-living crisis on their business in their interims on Thursday.
Currys shares fell 7.5% as the group said revenue contracted by 7% on a reported basis. The ability for UK consumers to shell out on big ticket items and competition overseas were the main factors driving lower sales.
Hargreaves Lansdown analysts highlighted the efforts Curry had gone to in order to remain competitive, but ultimately the deteriorating macro environment was too much to maintain guidance.
“It’s been able to mitigate this in the UK with firm selling prices and cost savings but the International business has suffered in the face of heavy discounting from competition. The group has downgraded its full year pre-tax profit guidance to between £100-£125m down from a range of £125m to £145m,” said Derren Nathan, Head of Equity Research, Hargreaves Lansdown.
Currys are looking at options including credit lines to help support sales but investors have clearly decided not to wait around to see if the strategy pays off in 2023.
“Of course, our customers are feeling real cost of living pressure and our job is to help them get hold of the technology that’s more essential to their lives than ever,” said Alex Baldock, Currys Group Chief Executive.
“We’re doing that, through our price promise, giving customers access to responsible credit, and offering more products that save them money through lower energy costs. Our Go Greener range is flying off the shelves.”