UK electronics retailer Currys has reported a 2% uptick in like-for-like (LFL) sales over the ten-week peak sales period concluding on 4 January 2025 - a robust performance against the preceding year's figures.
The UK and Ireland segment of the business particularly shone, showcasing a parallel revenue increase of 2% during the peak period, underpinned by strong sales activity and gross margin.
The company's omnichannel strategy bore fruit with notable growth, as evidenced by a 13% rise in order and collect services and a remarkable 24% surge in online-in-store sales.
This momentum carried through the financial year to date, with regional LFL sales climbing 4%.
The Nordics region posted a modest revenue growth of 1% during the peak period.
Despite operating in a subdued market environment, the company saw gains in sales volume and market share while achieving historically high gross margin levels.
Omnichannel initiatives continued to outperform, with order and collect sales skyrocketing by an impressive 29%.
Looking ahead to the close of the fiscal year 2024/25, Currys anticipates its group adjusted profit before tax to be between £145m and £155m.
This projection factors in the anticipated impact of new UK government budgetary measures set to take effect in the final five weeks of the 2024/25 financial cycle.
The group expects adjusted earnings before interest and taxes (EBIT) growth across both UK and Ireland and Nordic operations, coupled with an anticipated total interest expense close to £70m.
In the pursuit of sustainable liquidity, Currys maintains its target for at least a 3% adjusted EBIT margin while capping annual capital expenditures below £100m.
Currys group chief executive Alex Baldock stated: "We're pleased by our strong peak trading. We grew in both markets, continuing the trend of Currys' strengthening performance, and we believe this year's profits will be ahead of market expectations. With our ever-stronger cash generation and much-improved balance sheet, the board now expects to pay a dividend at the year-end.
In a separate development, Currys plans to accelerate automation and shift more business processes to lower-cost overseas locations to mitigate rising costs, as reported by Reuters.
