Currys raises profit forecasts again amid ‘robust’ demand

Electricals retailer Currys has raised its profit targets for the second time this year as sales grew further in recent months.

Shares in the company shot higher in early trading as a result.

The London-listed company told shareholders on Thursday that trading has been “robust” over the three months since the start of January.

It reported continued positive like-for-like sales growth in the UK and Ireland and its Nordics region over the period.

As a result, the retail group said it now expects to deliver an adjusted pre-tax profit of around £160 million for the current financial year.

It previously said it was on track for a profit of between £145 million and £155 million for the year.

Currys added that it expects to “finish the year in a strong net cash position”.

The guidance upgrade is the firm’s second this year after lifting its forecasts at the start of January.

In the previous update, Currys posted a 2% rise in UK like-for-like sales for the 10 weeks to January thanks to strong sales of laptops, mobile phones and gaming ranges.

It came as the firm cautioned it would have to hire fewer staff due to the cost hit from autumn budget measures as it looks to offset a soaring wage bill.

Investec equity analyst Kate Calvert suggested the company could benefit from resilient consumer demand, particularly for TVs and beauty items.

“Recent evidence from other consumer discretionary, big ticket specialists is that there is potentially evidence of consumer green shots, with demand bumping along the bottom,” she said.

“Management last talked about a potentially exciting computing replacement cycle, driven by AI (Currys had a 75% market share in AI computers over Christmas), and there is a Windows refresh in 2025 which typically stimulates demand in the category.

“The supersizing trend in TVs, the electrification trend in beauty, and the coffee trend could also run.”

Shares in Currys climbed 10.4% in early trading on Thursday.