Currys PLC (LSE:CURY) warned sales have softened in recent weeks while worries over Omicron will mean further headwinds.
The electricals retailer said it was still on course to meet expectations for profits this year of £160mln set a month ago, but costs associated with supply chain issues and lack of product availability especially on in-demand products was having an impact.
“The immediate outlook has become more uncertain, with the Omicron Covid-19 variant and associated government restrictions potentially further dampening market demand,” it said in a statement.
"Market demand has softened in the run-up to Christmas. Against this backdrop, we have taken market share in the UK, margins have remained stable and customer satisfaction has further improved."
Revenue in the six months to end October 2021 was down by 2% to £4.79bn against strong comparatives but profits were up by 20% to £48mln.
Cast the end of the half-year was £250mln and the group said it will start a £75mln share programme in the New Year alongside the payment of a 1p dividend.
"We've had a strong first half of the year," Alex Baldock, chief executive, said. "We grew colleague engagement and customer satisfaction, gained market share and stabilised gross margins in the UK, grew profits and generated strong cash flow.”