Shares of Currys, the technology product retailer, saw a significant increase in value, making it one of the top risers in the FTSE 250. Despite a slowdown in sales, the company has reiterated its fiscal 2024 guidance.
At 0908 GMT, shares were up by 11%, or 5.0 pence, reaching 50.25 pence.
Currys reported that its revenue on a like-for-like basis for the six months ended Oct. 28 decreased by 4%. This decline can be attributed to the ongoing pressure from persistent inflation and rising interest rates, which have impacted consumer spending.
The company’s adjusted pretax loss for this period stood at £16 million ($20.2 million), aligning with the figures from the same period last year.
According to Richard Hunter, Head of Markets at Interactive Investor, despite a decline of 6% in like-for-like sales, the gross margin in the Nordics market has recovered to levels seen two years ago. The region, which contributes 40% of overall revenues, has recently faced challenges due to an overstocked market and heavy discounting by competitors selling products at unprofitable prices.
While there are still indications of weak consumer confidence and demand in the Nordics region due to higher inflation and interest rates, the dip in sales is only half of what was expected. Additionally, there is hope for recovery as the gross margin has improved by 1.9%.
Currys stated that it anticipates capital expenditure of approximately £80 million and net exceptional cash costs of around £50 million for fiscal year 2024.
Chief Executive Alex Baldock highlighted the company’s priorities for the year, stating that their focus is on getting the Nordics region back on track, maintaining momentum in the UK&I market, and reinforcing their balance sheet and liquidity.
Despite the challenging economic environment, Currys is making progress in all these areas. Performance since the first half of the year has remained consistent with the board’s expectations.