Currys has raised its profit forecast for the year after posting strong sales during the festive period, despite ongoing concerns about consumer caution amid inflation and economic uncertainty.
Solid Holiday Sales Amid Caution
The electronics retailer saw a 6% rise in revenues over the 10-week period ending January 10, compared to the same time last year. While the UK and Ireland markets grew by 3%, sales in the Nordic countries surged by 12%, thanks to efforts to strengthen its performance there.
Chief Executive Alex Baldock credited high demand for AI-driven products, such as robot vacuum cleaners and wearable technology, for driving much of the growth. Notably, sales of smart glasses like Meta Ray-Ban and Oakley Meta rose by 270%, underscoring the growing consumer interest in AI-powered gadgets.
Despite these gains, Baldock acknowledged that consumer confidence in the UK remains volatile. With consumers still feeling the effects of rising inflation, high interest rates, and concerns about job security, spending levels have not fully recovered. In fact, Baldock noted that many consumers are “hoarding cash,” saving more than borrowing—an unusual shift compared to historical trends.
“Our technology market was down by 2% over the peak trading period in the UK,” Baldock remarked, indicating that some areas of the market are still struggling. However, he emphasized that Currys is continuing to adapt, finding new ways to drive growth beyond just the consumer’s spending power.
The retailer’s mobile network brand, iD Mobile, has seen a 19% year-on-year increase in subscribers, while its technology repair service also posted a 7% boost in sales. These segments are helping to buffer the business against broader market challenges.
Currys now expects to report pre-tax profits between £180 million and £190 million for the year, an increase of up to 17% compared to last year. The company’s positive forecast has been well received by investors, with shares rising by 5% on Wednesday morning.
