Electricals retailer Currys (CURY) posted a strong Christmas trading update and raised its profit guidance. As a result, pre-tax earnings for the year to May 2026 are now seen comfortably above the consensus.
| Share price: 132p (+5.2%) | PE: 10.8x |
| Market Cap: £1.4bn | Yield: 1.9% |
MARKET SHARE GAINS
For the 10 weeks to 10 January 2025, Currys reported an acceleration in peak organic sales growth. Across the group, like-for-like revenue increased by 6% against 2%-3% over the summer.
Growth in the UK & Ireland was 3%, with omnichannel sales growing at 11% during the period. The firm said it gained market share with strong sales in mobile alongside steady growth in computing and appliances.
Mobile subscribers increased 19% to 2.5 million, meaning the firm has added nearly 1 million customers in two years. Meanwhile, recurring service revenue rose 7% across the group, B2B sales rose 21% and new categories 42%.
OMNICHANNEL SUCCESS
Growth in the Nordics, previously a problem area, rose by 11% on a like-for-like basis. The firm said it saw market share gains and increased sales across all categories.
Thanks to this strong performance, pre-tax profit for FY26 is now seen between £180 million and £190 million. That compares with £162 million in FY25 and a consensus forecast for this year of £180 million.
Chief executive Alex Baldock was bullish on the outlook, particularly for the firm’s omnichannel model. ‘We gained market share in both UK&I and Nordics, in both stores and online, and our fastest growth was where customers use both channels.’
We have been fans of Currys for a couple of years now and the firm keeps on delivering. Growth in the UK & Ireland is steady but there are pockets of real outperformance such as B2B and mobile.
These aren’t just ways to grow the business, they are also sources of higher-margin and recurring revenue. Also, turning the Nordic markets round has been a major achievement with the result they now make up 40% of sales.
The group is committed to keeping a lid on annual capital spending and maintaining a cash balance of at least £100 million. Anything over that level can be returned to shareholders in the form of further share buybacks.
Read the press release here: https://www.currysplc.com/investors/
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