Currys cuts costs to keep profits on target
Currys says its on course to hit its profit targets despite a dip in total sales.
Although its international profits were below forecast, Currys said that resilient trading in the UK and Ireland delivered higher profits than anticipated.
Citing cost saving measures and gross margin increases, the electronics retailer was remaining confident in its outlook, despite a fall in peak (10 weeks to January 7 2023) like-for-like UK&I revenue of 5%.
Currys said its sales were strong in domestic appliances and mobile, but were offset by weaker consumer electronics and computing sales. The retailer noted that physical stores were outcompeting online sales.
It said its current year guidance is unchanged, and is expecting to deliver a profit before tax of between £100-125m, despite the deterioration of its international business. The retailer is also aiming to finish the year with less than £100m net debt.
Alex Baldock, Currys group chief cxecutive, said: We’ve delivered a strong Peak performance in the UK&I, 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.”