Currys – Christmas Gaming Boom Wasn’t Enough To Keep Sales Moving In The Right Direction

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In the 10 weeks ending 8 January 2022, Currys PLC (LON:CURY)’s like-for-like sales fell 5% compared to last year. This reflected declines in UK & Ireland and International, as the Technology market faced “uneven customer demand and supply disruption”.

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Full year adjusted profit before tax is expected to be around £155m, below the £160m guided last month.

Management is starting the planned £75m share buyback programme.

The shares fell 3.8% in early trading.

A Gamers’ Christmas For Currys

Matt Britzman, Equity Analyst at Hargreaves Lansdown:

“It might have been a “gamers’ Christmas” as CEO Alex Baldock eluded to in his comments, but that wasn’t enough to keep electrical goods shifting in high numbers from the shelves. UK Electrical sales fell 7% over the period, as the wider sector faced significant challenges and supply chain issues. The computer chip shortage warning light is blinking furiously in these figures. The broader UK Technology market was down 10%, as demand waivered and supply disruptions lingered.

Online sales numbers continue to look promising, and some great work’s been done over the last couple of years to build out this offering. The downside is margins are lower, which means further Covid scares forcing customers out of physical stores will hurt the bottom line.

On a morning where wider markets are weaker, news that the group was slightly lowering its full-year guidance hasn’t been received well. Those looking longer term should take solace in the fact the medium term targets are intact and the planned share buyback is commencing.”

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