UK's Currys flags 18% annual profit rise, defying retail slowdown
Currys Reports Strong Annual Performance Amid Retail Sector Challenges
By James Davey
LONDON, May 19 (Reuters) - British electricals retailer Currys forecast an 18% rise in annual profit after underlying sales at its main UK and Ireland business rose 3%, bucking the trend of a generally subdued retail sector and sending its shares sharply higher.
Recent Trading and Market Conditions
Currys, which sells computers, gaming products, televisions, fridges, washing machines and mobile phones, on Tuesday said recent trading had been "very solid" and it has yet to see an impact from the U.S.-Israeli war on Iran. It said its energy costs are well hedged for the coming year.
Its performance in Britain compares favourably with other retailers' recent updates, including from Primark and JD Sports.
Market Share Gains in Britain
MARKET SHARE GAINS IN BRITAIN
Currys said it won market share in Britain, with strong growth at its mobile network unit, iD Mobile, in services and in sales to businesses.
CEO Commentary and Share Performance
"We are well positioned to navigate any market volatility ahead, tap into exciting growth opportunities and continue returning capital to shareholders," CEO Alex Baldock said.
Currys shares were recently up 10%, paring losses over the last three months to 10%.
Leadership Changes and Consumer Trends
In March, Currys said Baldock, the architect of its turnaround, would step down after eight years in the role. He will join Boots as CEO in the autumn.
British consumers, shaken by the widening economic fallout from the Iran war, cut their spending last month for the first time since November 2024, a survey by Barclays showed.
Spending Patterns and Analyst Insights
That highlighted a reduction in spending on big-ticket items with the readings aligning with other gauges of the consumer economy that show faltering morale.
RBC Europe analysts said that while Currys' update was slightly better than they expected, its offer "remains fairly discretionary and its low margins mean that it remains highly sensitive to any changes in the macro outlook for consumers."
Financial Results and Outlook
For the year to May 2, Currys forecast an adjusted profit before tax of around 191 million pounds ($256 million), up from 162 million pounds a year earlier. It previously guided for 180 million to 190 million pounds.
Sales Performance by Region
Like-for-like sales in the Nordics increased 6% over the year, while group like-for-like sales were up 4%.
CEO Succession Process
Currys said the process to appoint a new CEO is "progressing well."
($1 = 0.7458 pounds)
(Reporting by James Davey; Editing by Sarah Young, Paul Sandle and Thomas Derpinghaus)
