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Currys lowers profit expectations to £155m amid 10% drop in sales

Currys said the technology market was ‘challenging’ this Christmas, with year-on-year revenue down 3%.

Currys has lowered its full year pre-tax profit expectations from £160m to £155m following a 10% drop in sales in the 10 weeks ending 8 January 2022, as a result of “unven” consumer demand and supply disruptions.

In the UK and Ireland (UK&I), like-for-like revenues in the quarter decreased by 6%, and by 2% on a two-year basis for the same quarter. 

On a yearly basis, Currys’ revenue dropped by 3%, although it went up by 11% compared to 2020. This is due to a drop in sales by 5% year-on-year but on a two-year basis, sales increased by 4%.

Meanwhile, Currys experienced a 29% surge UK&I quarterly online sales compared to FY20, with international online sales also up 79%.

The strongest growth which the company experienced was across gaming and in large domestic appliances.

Alex Baldock, group chief executive, said: “This was a gamers’ Christmas, the year that virtual reality broke into the mainstream, and when consoles flew off the shelves. Oculus Quest 2 and PS5 were stars. Appliances large and small also enjoyed strong sales, as consumers continued to kit out their homes.

“Currys came through this market turbulence well. We gained share in the UK, extending our market leadership. At the same time, we focused on profitable sales, with good discipline on margin, cost and stock. The stronger business we’ve built was evident in record levels of colleague engagement and customer satisfaction.”

He added: “Nobody is resting here, of course, and much hard work lies ahead. We can see the prize of a Currys that’s world class for colleagues, customers, shareholders and society, a Currys that helps everyone enjoy amazing technology. That’s the Currys we’re building.”

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