U.K. electricals retailer, Currys, has reported strong peak trading with like-for-like revenue for the U.K. & Ireland up 2%. The retailer attributed this to strong sales in mobile, gaming, and premium computing, where it has a market share of 75% for AI laptops. Figures were, however, offset by weaker trends in TV.
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Currys rank on Fortune 500 Europe
Omnichannel sales were particularly strong, including order and collect which was up 13%, and online-in-store sales which were up 24%. Currys’ Group Chief Executive, Alex Baldock, is known to favor services sales as a means to drive growth and these grew +7.8% points to 41.1%.
Currys’ Nordics business accounts for around 40% of overall revenues and has been experiencing a challenging market of late. However, the Nordics business reported an encouraging like-for-like revenue increase of 1%.
The results mean Group adjusted profit before tax is expected to be £145 to £155 million ($181 million to $194 million), a 23-31% year-on-year increase and ahead of consensus expectations which were in the region of £140 million ($175 million). On the back of this and the sale of the Greece business for net proceeds of £156 million ($195 million), the Board intends to declare a final dividend of 1.3p alongside full-year results in July. Net cash at the half-year to rose to £107 million ($134 million) from a previous debt position of £129 million ($161 million), while free cash flow rose by 46% to £50 million ($63 million).
Currys’ Nordics business accounts for around 40% of overall revenues and has been experiencing a challenging market of late.
And the positive numbers have had an encouraging impact on Currys’ share price, the trading update contributing to a nearly 80% increase since January 2024.
Group Chief Executive, Alex Baldock commented, “We’re pleased by our strong Peak trading. We grew in both markets, continuing the trend of Currys’ strengthening performance, and we believe this year’s profits will be ahead of market expectations. With our ever-stronger cash generation and much-improved balance sheet, the Board now expects to pay a dividend at the year-end.
This Peak, customers took advantage of our market-beating deals and best-ever availability. AI laptops, where we have 75% market share, and premium mobiles proved especially popular. In all markets, customers showed they preferred shopping both online and in-store, and our investments in both channels paid off.
“AI laptops, where we have 75% market share, and premium mobiles proved especially popular…”
Group Chief Executive, Alex Baldock
In the UK&I, we’ve continued to grow sales and keep margins stable, offsetting current cost headwinds. iD Mobile and B2B performed especially strongly, as did sales of the services and solutions that are so valuable to customers and to us”.
Discussing the Nordics business, Baldock went on to say, “Nordics was back into growth, continuing its improving trajectory, outperforming competitors while improving margins and reducing costs. In a still-weak market, the evident strength of our Nordics business bodes well for the future”.
As reported in Fortune Currys has ambitious plans for digitally transforming the business, with Group CIO, Andy Gamble, on record as being passionate about AI.
Baldock concluded, ”We start 2025 confident that our strategy is working, and determined to keep building this ever-stronger Currys to the benefit of colleagues, customers, shareholders, and society”.
The strong headwinds of the measures announced by Chancellor Rachel Reeves in the autumn Budget will soon be blowing through the industry. According to Baldock, Currys alone faces an increased wage bill of £32 million ($40 million). However, prudent financial management, combined with an improving customer proposition means that it is better positioned than many to face future challenges.
