Currys PLC (LSE:CURY) has held its guidance for the current year as a stronger-than-expected performance in the UK offset a weaker performance from its international business.
In a trading update for the 10 weeks to 7 January 2023, the electricals retailer said revenue in its UK and Ireland business was 5% lower but profits were better than expected reflecting gross margin increases and continued cost savings.
Sales of domestic appliances and mobile were strong but this was offset by weaker consumer electronics and computing revenues while in-store sales outperformed online.
In a sign of the tougher consumer environment, the group reported a record adoption of credit offers, up 4.3 percentage points, with 1.9mln active credit customers.
But the improved showing in the UK was offset by worse-than-expected results in its international business where revenues were 7% lower and profits below forecast due to a Nordics market-driven sales slowdown and continued pressure on gross margins. Sales declined in all categories except small appliances.
As a result, Currys forecast full-year adjusted pre-tax profits of between £100mln to £125mln assuming no further unexpected macro deterioration with capex expected of around £120mln.
In the statement, Alex Baldock, Currys' group chief executive said “while markets remain challenging, we're confident in our full-year guidance as UK&I improvements offset International weakness.”