Currys’ share price up after ‘better-than-expected’ Christmas trading

Currys’ share price has spiked more than seven per cent, after it told investors this morning its Christmas profits were better-than-expected.

The technology retailer claimed better than forecast profits over the Christmas period, with sales in the UK offsetting a slow down in Scandinavia.

The company said UK trade rose in the 10 weeks ending 7 January, which fell by five per cent compared to the previous Christmas. However, this improved relative to the eight per cent drop during the year to date.

Currys added it had seen strong sales of appliances and mobile phone equipment relative to computing equipment where it slowed down.

Its shares were up 7.74 per cent this morning.

During the year, Currys reported a fall of seven per cent in international revenue driven by a 10 per cent dip in its intake in Scandinavia, this compared to a year-on-year five per cent fall in the UK and Ireland,

The firm said international like-for-like revenue had grown six per cent over the last three year and up five per cent in Scandinavia. 

The electronic retailer added it remained confident of reaching between £100 and 125m for the year.

This comes after the company issued a lower-than-expected profit before tax expectations for the year, with the firm not changing its guidance.

Stores outperformed online retail and there were stronger sales in domestic appliances, mobiles as well as a growth in services including installation. 

Alex Baldock, chief executive, said Currys had delivered “growing profits again through resilient sales, increasing gross margins and strong cost discipline. Our transformation is visibly succeeding.”

“Internationally, it remains tough and we continue to face into intense, but temporary, market pressures. We’re not simply waiting for the external environment to improve, of course.  We’ve already reduced stock levels and stepped up our measures to increase margins and reduce costs.”

He added the firm was “confident in our full year guidance” and results in the UK showed it was “‘on the right path” and “confident in returning our high quality International business to robust profits and cash generation.”