Currys upgrades outlook as sales outperform
High sales growth at Currys has led the electrical retailer to increase its expected profit for the full year.
Its share price rose more than 10 per cent in early trades.
The company told markets this morning that adjusted profit before tax is now expected to be around £160m, versus previous guidance of £145m to £155m.
Sales growth in 2025 has been “robust”, Currys said, with continued positive like-for-like sales growth in the UK and Ireland, as well as the Nordics.
Currys, which has 715 stores in six countries, enjoyed a return to sales growth in 2024, reaping the rewards of a significant multi-year turnaround plan.
Profit before tax of £160m for the year to April 2025 would be a nearly six-fold increase.
Analyst Wayne Brown added that the “potential for lower pension contributions, cash exceptionals and interest costs”, as well as better margins in the previously-dire Nordic regions, could attract new investors.
Curry’s Nordic business faced significant trouble during the pandemic, including heavy discounting from rivals. Profits plummeted, and the issues caused Currys to pull its dividend.
The Nordic arm has been on an upward track since 2023.
In light of the new figures, Panmure analysts upgraded their target price for Currys from 170p to 180p. As of the market close on April 2, the stock was worth 88.95p.
“Not only is positive earnings momentum a key theme, but there are so many FCF catalysts over the next few years, we are surprised the shares are not higher,” Panmure analysts said.
“The outlook in the Nordic economies appears to be improving – prompting us to question whether Nordic [earnings before interested and tax] EBIT margins could return to pre-pandemic levels sooner rather than later.”