Currys full-year profit to beat expectations

Electricals retailer Currys said on Thursday that full-year profit was set to be ahead of consensus expectations despite reporting a drop in sales.

In an update for the 10 weeks to 6 January, the retailer said group sales declined by 4%, with sales in the UK and Ireland down 3%, while the international segment saw a 6% fall. The Nordics and Greece saw sales fall 6% and 4%, respectively.

Peak like-for-like revenue in the UK and Ireland declined 3%. Currys said "robust" profits were delivered through stable gross margin and continued cost savings. Sales were strong in mobile, but this was offset by weaker trends in TV and computing.

The company now expects adjusted pre-tax profit for the year of between £105m and £115m, above consensus expectations of £104m.

Chief executive Alex Baldock said: "We've had a successful peak trading period, for customers who are more satisfied than ever, and for profits and cashflow. Our markets may be no easier, but we now expect full-year profits to be above consensus expectations.

"In the UK&I, 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."