Currys: Shares dip despite interest rates helping sales at retailer
Electrical retailer Currys has reported a jump in profit after sales jumped thanks in part to a boost from lower interest costs.
In a trading update on Wednesday, the firm said it expects pre-tax profit to come in at £162m, up 37 per cent year-on-year.
Previous guidance had indicated profit for the period ending May 3 would be £160m.
Despite this, shares dipped in early trading. The firm’s stock was down over 0.6 per cent as markets opened on Wednesday.
But Panmure Analysts remained keen on the stock arguing there is a “bull case” for the next 12 to 18 months with a fleet of tech products set to launch.
They added: “There is much to be optimistic about: trading continues to improve, share gains are evident, and there are early signs of a replacement cycle returning in the computing and gaming categories.”
The retailer, which has 715 stores across six countries, said it had finished the year with net cash of more than £180m.
The company cited lower interest costs and efficient capital management for the growth.
Sales growth hit two per cent for the year.
On a divisional level, its UK operations outpaced business in the Nordics. Sales were up three per cent in the UK for the second half of the year, compared to two in the Nordics.
However, sales growth in the Nordics was flat for the year, while it topped four per cent in the UK.
The Nordic business faced significant headwinds during the pandemic, including heavy discounting from rivals. Profits tumbled, and the issues caused Currys to pull its dividend.
Broker named Currys a top pick
Curry’s update follows a strong performance in the previous financial year where Currys reported pre-tax profit of £28m, up from a pre-tax loss of £462m the year before.
The London-listed firm was Panmure Liberum’s most-preferred stock of 2025, “stands out in a consumer landscape constrained by low growth” the broker said.
Alex Baldock, group chief executive, said: “We finished another year of strengthening performance on a high note with encouraging momentum and accelerating sales growth in both the UK&I and the Nordics. In both, we’ve grown profits by delivering sales growth, market share gains and gross margin increases. In the Nordics, we’ve also shown especially strong cost discipline in a still-challenging market.
“Cashflow was very healthy. This further strengthening of our balance sheet ensures our resilience and allows the resumption of dividends.”