Currys PLC (LSE:CURY) said it had a “strong operational and financial performance” in the year to 30 April 2022, but cautioned that the outlook for consumer spending is uncertain and forecast a fall in profit for the current year.
The electrical good retailer saw group revenue fall slightly to £10.1bn from £10.3bn the year prior, although adjusted profit before tax rose to £186mln from £156mln.
It reported an improved adjusted EBIT margin of 2.7% for the year-end 30 April 2022, up from 2.5% the previous year.
Store sales were up 24% globally as the lifting of COVID restrictions meant “customers rediscovered the benefits of stores”, Curry said in its earnings statement.
As a result of macro conditions, such as inflationary headwinds, the shift to online and the current economic outlook, the retailer is forecasting adjusted pre-tax profit of £130mln-£150mln for the year to April 2023 and is targeting a 3% adjusted EBIT margin by 2023/24.
The company said it will continue to offset inflation with its ongoing savings programmes and "vigilant" cost control.
“Our well-established price promise means customers 'won't get it cheaper. Full stop' on all products and today we're going even further with '2021 Price Lock', our new price freeze on dozens of great products,” said chief executive Alex Baldock.
Currys said it will use the market weakness as an opportunity to increase market share.
“Our scale as an international market leader, our grip on costs and our strong relationships with suppliers will allow us to manage inflationary headwinds and keep amazing technology within reach of everyone, even now,” said Baldock.
“We're investing in our energy-efficient 'Go Greener' range. We're doing more to help customers spread the cost, announcing '12 month Pay Delay' on every purchase over £99.”