// Currys group sales slump 6% as international market pressures intensify
// However, the electrical retailer remains confident of hitting profit targets
Currys UK and Ireland delivered better than expected profits over Christmas to offset struggling international business.
The group’s like for like sales slumped 6% in the 10 weeks to 7 January as UK and Ireland sales dipped 5%. However, it achieved stronger profits than expected thanks to a gross margin increase and cost cutting.
International like-for-likes fell 7% and plummeted 10% in the Nordics as it continues to be hit by aggressive growth strategies from European rivals.
Profits were below forecast in the market as margins came under pressure.
Despite the further deterioration in its internation business, Currys said it remained confident of hitting its full-year profit guidance of £100m to £125m.
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Currys group chief executive Alex Baldock said the Nordic business continued to face intense temporary market pressures.
As a result, he said the group had “stepped up” its cost saving measures to increase gross margins and reduce stock in order to “maintain market leadership” overseas.
In the UK and Ireland, the electrical retailer achieved strong sales in domestic appliance and mobile, which helped to offset weakened demand for electronics and computing.
Store sales outperformed online during the period with in-store product bundling rocketing 580 basis points.
Baldock said: “We’ve delivered a strong peak performance in the UK&I, growing profits again through resilient sales, increasing gross margins – not least through record services adoption – and strong cost discipline. Our transformation is visibly succeeding.
“While markets remain challenging, we’re confident in our full year guidance as UK and Ireland improvements offset international weakness.”
He added that its results in the UK and Ireland showed that Currys is on “the right path”.
“We’re excited about our growing momentum, and we intend to build on it.
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