British electrical retailer Currys has reported a 3% decline in like-for-like (LFL) revenue for the ten weeks ending 6 January 2024 (peak).
In the UK & Ireland, Currys’ peak LFL revenue fell by 3% year-on-year (YoY).
The company said it managed to deliver strong profits through stable gross margin and continued cost savings.
Sales remained robust in mobile, offset by weaker performance in TV and computing sectors.
Notably, Currys said that it witnessed strong growth in all services, which drove growth in margins and ‘Customers for Life’.
Internationally, Currys experienced a 2% YoY drop in peak LFL revenue and 5% decline in peak LFL year to date.
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Nordics peak LFL dropped 2%, despite improving sales trends compared to first half.
The retailer said sales increased in Norway, which was offset by other countries, particularly Finland, and gross margin is up, despite intense competition.
As with Greece, peak LFL sales dropped by 4%.
Currys expects its current year guidance for adjusted profit before tax (PBT) to be in the range of £105m ($133m) to £115m ($146m), ahead of consensus expectations.
The company anticipates capital expenditure of around £70m and net exceptional cash costs of approximately £50m, aiming to conclude the year with net debt better than last year.
Currys 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.
“We’re in a healthy financial position, and our strategy is delivering a consistently improving customer proposition. As consumer confidence improves, we’ll be well placed to build on these strong foundations, to benefit shareholders as well as colleagues and customers.”