// Currys posts a pre-tax loss of £17 million in the six months ended Oct. 29, compared to a profit of £48 million a year earlier
// The retailer now expects 2023 fiscal year profit before tax to be between £100m and £125m
Currys has cut its annual profit outlook after posting a half-year loss, weighed down by its international markets as a deepening cost-of-living crisis forces customers to limit their spending.
The London-based business said adjusted pre-tax loss was £17 million in the six months ended Oct. 29, compared to a profit of £48 million a year earlier.
As a result, the electricals retailer now expects 2023 fiscal year profit before tax to be between £100 million and £125 million, down from the £130 million-£150 million range guided in July.
The profit warning from Currys comes as consumers in Europe, particularly in Britain, are feeling the pinch of surging energy and food bills, and businesses across sectors grapple with tight margins in the wake of soaring inflation.
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Currys chief executive Officer Alex Baldock said the company’s international business saw a difficult first half, with margins falling sharply as domestic competitors with excess stocks gave away heavy discounts.
He said in a statement: “Of course, our customers are feeling real cost of living pressure and our job is to help them get hold of the technology that’s more essential to their lives than ever.
“We’re doing that, through our price promise, giving customers access to responsible credit, and offering more products that save them money through lower energy costs. Our Go Greener range is flying off the shelves.
“It’s a tough environment, and we are planning for that to continue. Still, we expect to maintain the trajectory of improving UK&I profitability and a robust recovery in International profits. Our ever-improving customer experience and strong Services give us confidence in improving margins. And we will continue our excellent progress on cost efficiency.”
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