Currys profits to beat expectations despite revenue drop

Electrical retailer Currys experienced a drop in sales revenue over the festive period but expects full year profit to exceed expectations.

In a trading update covering the 10 weeks to 6 January, Currys said revenue declined by three percent in the UK and Ireland. Revenue dropped by two per cent in the Nordics and four per cent in Greece.

The company said strong sales in the mobile category in the UK and Ireland helped to offset weaker sales in TV and computing. A stable gross margin and continued cost saving also helped to make up for weaker sales.

Currys added that it expects full year group adjusted profits before tax to be in the region of £105 -£115 million, ahead of expectations of £104 million.

Commenting on the news Alex Baldock, group chief executive, said that the company had improved customer satisfaction and was building “customers for life.”

“We’ve had a successful Peak trading period, for customers who are more satisfied than ever, and for profits and cashflow,” said Baldock. “Our markets may be no easier, but we now expect full-year profits to be above consensus expectations.

“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.”

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