Currys shares were higher on Thursday after the electronics retailer said it had delivered robust profit “through stable gross margin and continued cost savings”.
Although group revenue was down 4% in Curry’s first half, the group said they now expected profit before tax to be higher than previous expectations at £105-115m.
Currys shares were up over 6% at the time of writing.
The company saw strength in its mobile sales which was slightly offset by slower sales of TVs and computers. Currys have honed in on the potential for higher margins from their customer services business and are enjoying ‘encouraging momentum’ in the area.
Currys said they are getting their Nordics business back on track as they prepare to dispose of their Greek business for £156m. The proceeds of the sale will be used to pay down debt as the company focuses on cash generation and managing costs.
“It’s no secret that Currys has had a hard time of late, and the group’s likely been praying for a Christmas miracle in the form of a boost to sales. But it looks like the group didn’t make its wish under a shooting star as sales across all regions continued to decline, in what should be peak business months for Currys,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.
“Part of this comes down to the fact that consumers are simply struggling to justify as much discretionary spending on TVs, laptops and gadgets amidst the ongoing cost-of-living pressures. Record credit adoption in the UK suggests customers really are finding it harder to afford a lot of the big-ticket items that Currys sells. And in the Nordics region, the group’s second-largest segment, the market remains extremely tough.”
