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Currys warns on ‘uncertain outlook’ for shoppers despite rise in profits


// Currys full-year earnings rise but cautions on outlook for consumer spending
// Adjusted pre-tax profit rose 19% to £186m in the year to April 30

Currys has recorded a rise in full-year earnings but warned “the outlook for consumer spending is uncertain”.

The electricals retailer said adjusted pre-tax profit rose 19% to £186 million in the year to April 30 while Adjusted EBIT climbed 5% to £274 million.

Currys’ UK business recorded a 21% improvement in adjusted EBIT to £11 million and earnings from its international operations contracted 4% to £163 million.

READ MORE: Asda joins Asos, Amazon and Currys in rejecting online sales tax

Group sales dropped 2% on a reported currency basis to £10.14 billion, and were down 3% on a like-for-like basis.

Compared to pre-pandemic levels, however, like-for-likes rose 10%.

Total UK sales declined 3% in reported currencies to £5.48 billion year-on-year, as like-for-likes dropped 4%. On a two-year basis, like-for-likes were up 6%.

Sales in Currys international businesses dropped 1% on a reported basis to £4.66 billion. Like-for-likes also slipped 1% year-on-year but jumped 15% on pre-pandemic levels.

Currys warned that the outlook remains “uncertain” and said it was taking a “prudent view” of the tech market.

It aims to alleviate inflation through its cost reduction programme – it saved £69 million during the financial year – and “vigilant day-to-day cost control”.

Currys said that its scale would allow it to “ride out these issues” in the coming months and “use the expected market weakness as an opportunity to gain share and build long term value”.

“A stronger business allows us to help customers through the cost of living crisis,” Currys boss Alex Baldock said.

“Our well-established price promise means customers ‘won’t get it cheaper, full stop’ on all products and today we’re going even further with ‘2021 Price Lock’, our new price freeze on dozens of great products.

“Our scale as an international market leader, our grip on costs and our strong relationships with suppliers will allow us to manage inflationary headwinds and keep amazing technology within reach of everyone, even now. That’s what Currys exists to do, and it’s never mattered more.”

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