Currys shares jump as profit prospects rise after strong Christmas sales By Investing.com

Investing.com — Shares in Currys ( LON: ) rose over 11% on Wednesday after the retailer raised its profit guidance following strong sales over the Christmas trading period.

In the ten weeks to 4 January 2025, the company’s like-for-like revenues rose by 2% in the UK and Ireland.

This growth was driven by strong demand for mobile phones, gaming devices and high-end computing products, along with stable gross margins.

Several omnichannel opportunities stood out, including the retailer’s 13% increase in order and pickup services and significant increases in online revenue.

In the Nordic markets, Currys also achieved positive results, with revenue up 1%.

The region saw growth in categories such as home appliances and computing, although overall market conditions remained soft.

This result was contributed by the company’s strategy to balance sales with gross margin performance, rather than aiming for less profitable sales.

Cost savings in the Nordic countries further neutralize inflationary pressures, demonstrating a continued focus on operational efficiency.

Adjusted Group profit before tax is now expected to reach between £145m and £155m, reflecting a 23-31% improvement on previous expectations.

“We are pleased with our strong peak trading. We grew in both markets, continuing the trend of strengthening Currys’ performance and we believe this year’s profit will be above market expectations,” said Alex Baldock, CEO of Currys.

A total of 2.1 million subscribers are now subscribed to Currys’ iD Mobile division, an increase of 500,000 subscribers compared to the previous year.

Currys attributed its success to well-executed holiday promotions, high availability of premium products and investment in its online and in-store platforms.

The company intends to pay 1.3p per share as part of its full-year results, reaffirming its commitment to paying a dividend.

Both the UK and the Nordics are expected to continue to grow adjusted EBIT as well as improve free cash flow.