Currys raises profit forecasts amid strong demand in retail sector
- Currys has reported continued positive like-for-like sales growth in the UK, Ireland, and Nordics since January.
- The company raised its profit forecast to around £160 million for the current financial year, citing robust trading.
- Shares in Currys surged by 10.4% in early trading, indicating strong investor confidence.
In the UK and Ireland, electricals retailer Currys has experienced a significant surge in demand, leading the company to raise its profit forecast for the second time in 2025. The company reported that since the beginning of January, trading has been strong, with like-for-like sales growth in the regions. This growth can be attributed to increased sales in various product categories, including laptops, mobile phones, and gaming items, indicating a resilient consumer demand during this period. Investors responded positively to the company's performance, driving shares up by 10.4% during early trading on Thursday. Currys indicated that the strong sales momentum has allowed it to revise its adjusted pre-tax profit expectation upwards from a previously estimated range of £145 million to £155 million to around £160 million for the current financial year. This represents a notable shift in the company's financial outlook, reflecting the ongoing positive performance during the first quarter of the year. The revised guidance underscores Currys’ strong position in the market amid economic pressures. Analysts suggest that various trends in consumer preference within the electronics sector may be aiding Currys. With a near 75% market share in artificial intelligence-based computers over the Christmas season, the company appears well positioned to capitalize on current technological trends. Industry experts believe the impending Windows refresh in 2025 could further stimulate demand, especially in computing. Additionally, trends such as larger televisions and the electrification of beauty products are influencing consumer behavior positively. As Currys evaluates its staffing needs, it is also navigating budgetary constraints due to recent economic policies impacting wage bills. The company's management has acknowledged the need to adjust hiring plans in response to these economic measures while aiming to finish the financial year with a strong net cash position. The overall outlook, combined with strategic management decisions, positions Currys favorably as it continues to adapt to consumer demand and market changes.