Currys reports 7% LFL sales growth, maintains full-year guidance; shares slip

Currys, the UK electronics retailer, reported a 7% like-for-like sales increase for the 17 weeks ending August 29, with U.K. and Ireland sales growing by 6% and Nordics sales up 9%. The company stated it is comfortable with market expectations and kept its full-year guidance unchanged. However, Currys' shares dropped 1.3% in early London trading.

In the U.K. and Ireland, sales growth was attributed to both physical stores and online channels, with double-digit growth in new categories and business-to-business (B2B) sales. The retailer also gained market share across all major categories in a stagnant market, largely driven by the World Cup and summer heatwaves. Recurring Services revenue continued to rise, with flexpay adoption increasing by 30 basis points year-over-year to 23.6%, and iD Mobile subscribers expanding by 16% to over 2.7 million.

In the Nordics, sales growth was propelled by white goods and mobile sales, supported by strong performance in new categories, B2B, and Services, along with market share gains in most countries compared to soft comparatives. Currys maintained stable gross margins across both regions through effective cost control.

Citi analysts expressed optimism about Currys' share price reaction, given the strong trading and the company's reiterated guidance, despite the shares' weakness leading up to the announcement. Looking ahead, Currys aims to maintain growth in higher-margin recurring Services revenue, with the goal of reaching at least 2.8 million iD Mobile subscribers by year-end.

The company is also executing its £50 million share buyback, with £23 million completed so far, and expects its net cash position to exceed the £100 million target by the end of the year.