Currys kicks off year with strong sales despite high street pressures
Currys has reported a robust start to its new financial year, with sales growth across the UK, Ireland and Nordics, and a £50m share buyback programme as the electricals retailer looks to reward shareholders.
In a trading update for the 17 weeks to 30 August, the FTSE 250 firm said UK & Ireland like-for-like revenue rose three per cent, buoyed by double-digit gains in newer categories such as gaming, AI computing and large domestic appliances.
Cooling products and coffee machines also sold strongly throughout the summer months, although demand for televisions, tablets, and air fryers declined.
Recurring services remained a bright spot, with customer credit adoption climbing to 23.3 per cent and iD Mobile subscribers surging 22 per cent year-on-year to 2.3m.
Group chief executive Alex Baldock said the mobile business was on track to beat its 2.5m target before the year-end.
Margins were stable in the UK despite cost pressures, with higher volumes providing operating leverage.
Challenging high street backdrop
Currys’ update comes against a mixed picture for the British high street.
The retailer’s website suffered disruption earlier this week after planned maintenance overran, leaving frustrated shoppers unable to buy online.
Shares have also slipped around 12 per cent since a July peak, though they remain nearly 20 per cent higher so far in 2025.
The company has been vocal on government policy, with Baldock warning in August that higher business rates risk “higher prices, lower investment, fewer jobs and more boarded-up shops”.
Analysts at Deutsche Bank have similarly flagged that slowing wage growth could begin to squeeze retailers in the months ahead.
Even so, Currys struck an upbeat note, as the group revealed its pension deficit had been cut to £134m from £403m in 2022, with contributions set to fall sharply from 2026.
It also confirmed the launch of a £50m buyback alongside a £25m dividend, taking total shareholder returns this year to £75m.
Baldock said: “We’re on a good track at Currys, with growing momentum… We’re confident profit margins will step forward again this year”.