Retailer Currys edges down profit guidance after ‘challenging’ Christmas

Electrical goods retailer Currys on Friday edged down its full-year profit guidance after what it called a "challenging" technology market at Christmas with uneven customer demand and supply disruption.

The group, which trades from more than 800 stores in seven countries, including Ireland, said it expected to deliver a full-year 2021-22 adjusted pretax profit of around £155 million (€185.5 million), versus last month’s guidance of about £160 million and £156 million made in 2020-21.

Currys said like-for-like revenue fell 5 per cent in the 10 weeks to January 8th year-on-year, but was up 4 per cent against the same period in 2019-20, before the pandemic impacted trading.

Revenue from its business in Britain and Ireland fell 6 per cent year-on-year, while international revenue (the Nordics and Greece) fell 3 per cent.

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The group, previously known as Dixons Carphone, said the overall UK technology market was down 10 per cent compared to last year’s peak period.

"Currys came through this market turbulence well. We gained share in the UK, extending our market leadership. At the same time, we focused on profitable sales, with good discipline on margin, cost and stock," said chief executive Alex Baldock.

He said the group had exited the peak period with stock in a good position although it was continuing to face into uncertain demand and supply chain disruption which meant there were some areas where availability “remains challenged”.

Currys maintained its medium-term guidance – free cash flow generation of more than £1 billion over 2019-20 to 2023-24 and an adjusted EBIT margin of at least 4 per cent by 2023-24. – Reuters