Currys FY profit to beat market expectations after 'very strong' peak trading

(Sharecast News) - Electricals retailer Currys said on Wednesday that full-year profit was set to beat market expectations after "very strong" trading over the peak Christmas and new year period. In the 10 weeks to 10 January, group sales rose 6%, with sales in the Nordics up 12%, while the UK & Ireland saw a 3% increase.

Currys referred to its performance in the Nordics as "standout", with market shares gains in a "buoyant" market and sales growth across all categories.

The company now expects full-year adjusted pre-tax profit of between £180m and £190m, up 11% to 17% on the previous year - including "significant" growth in adjusted EBIT for the Nordics - and above consensus expectations of £180m.

Chief executive Alex Baldock said: "We're pleased with our very strong trading over Peak, growing sales healthily and in a disciplined way. We now expect this year's profits to exceed market expectations, to keep returning cash to shareholders and finish the year with more than £100m net cash.

"Our Omnichannel model is winning. We gained market share in both UK&I and Nordics, in both stores and online, and our fastest growth was where customers use both channels together. This is a competitive advantage we'll keep building.

"In the Nordics, which represents over 40% of our business, the market continued to recover, and we grew sales in every category, and every country. Along with sales growth, we've kept our hard-won margin and cost discipline which are producing substantial growth in profits and cashflow, a fitting reward for the team's great work in building a sustainably stronger business."