// Currys has nudged down its profit guidance after suffering a decline in sales during the Black Friday & Christmas trading period.
// Profit before tax is now expected to come in at £155m, having previously forecast £160m at its half-year results
Electricals retailer Currys has edged down its full year profit guidance after what it called a “challenging” technology market at Christmas with uneven customer demand and supply disruption.
The group, which trades from more than 800 stores in seven countries and online, said it expected to deliver a full-year 2021-22 adjusted pretax profit of around £155 million, versus last month’s guidance of about £160 million and £156 million made in 2020-21.
Currys said like-for-like revenue fell 5% in the 10 weeks to Jan. 8 year-on-year, but was up 4% against the same period in 2019-20, before the pandemic impacted trading.
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Despite the drop in sales, Currys insisted it made market share gains in a “softer” electricals market that was down 10% year on year. It hailed growth in gaming and large domestic appliances during the period.
The retailer’s international business grew like-for-like sales 14% on a two-year basis but trailed last year’s performance by 3%.
The group as a whole posted a 5% decline in like for likes compared to 2020 but delivered a 4% uplift on pre-pandemic levels.
Currys chief executive Alex Baldock described the tech market as “challenging”, highlighting “uneven consumer demand and supply disruption”.
Baldock said: “Customer demand for some tech was strong. 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. Still, the overall UK tech market was down 10% compared to last year’s peak period.
“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 update comes just days after Sainsbury’s revealed sales at its Argos business tumbled during the golden quarter.