UK's Currys flags 18% profit rise, defying retail slowdown
Currys Reports Strong Annual Profit Growth Amid Challenging Retail Environment
LONDON, May 19 (Reuters) - British electricals retailer Currys forecast an 18% rise in annual profit after underlying sales in its main UK and Ireland business rose 3%, bucking the trend of a generally subdued retail sector.
Business Performance and Sales Growth
Currys, which sells computers, gaming products, televisions, fridges, washing machines and mobile phones, said on Tuesday recent trading had been "very solid" and it is yet to see an impact from the Middle East conflict, while its energy costs were well hedged for the coming year.
Profit Forecast and Financial Outlook
The group forecast a year to May 2 adjusted profit before tax of around 191 million pounds ($256 million), up from 162 million pounds in 2024/25. It previously guided to 180 to 190 million pounds.
Regional Sales Performance
Currys said like-for-like sales in the Nordics increased 6% over the year, while group like-for-like sales were up 4%.
CEO Statement on Future Prospects
"This performance, combined with our strong balance sheet, means 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.
Broader Retail Sector Trends
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 last week.
Consumer Spending and Economic Sentiment
The survey showed a reduction in spending on big-ticket items with the readings chiming with other gauges of the consumer economy that show faltering morale.
Leadership Changes at Currys
In March, Currys said Baldock, the architect of the group's turnaround, was stepping down after eight years in the role. He will join Boots as CEO in the autumn.
Additional Information
($1 = 0.7458 pounds)
(Reporting by James Davey; editing by Sarah Young and Paul Sandle)
