Currys flags lower profit as consumer spend uncertain

Inflation rates chill consumer spending on non-essential items

Electrical appliance retailer Currys warned of lower annual profit on Thursday, saying it expected the new financial year to be difficult due to uncertain consumer spending.

Consumers have been cutting back on shopping and withholding purchases of non-essential items as inflation hit decades-high levels, pushing consumer confidence to a record low.

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“Inflation is very likely to create a headwind to consumer spending and impact sales, particularly in some of our more discretionary categories,” said chief executive Alex Baldock.

The company expects adjusted profit before tax for the year ending April 2023 to be in the range of £130 million (€152.7 million) to £150 million, compared with £186 million a year earlier.

However, Currys expects to continue to be free cash flow generative during the year. Groups’ like-for-like revenue for the full-year ended April 30th fell 3 per cent. — Reuters