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UK retailer Currys edges down profit guidance after 'challenging' Christmas



© Reuters. FILE PHOTO: A customer stands in Currys PC World store on Oxford Street on ‘Black Friday’ in London, Britain November 24, 2017. REUTERS/Simon Dawson

LONDON (Reuters) -British electricals retailer Currys on Friday edged down its full-year profit guidance after what it called a “challenging” technology market at Christmas with uneven customer demand and supply disruption.

The group, which trades from more than 800 stores in seven countries and online, said it expected to deliver a full-year 2021-22 adjusted pretax profit of around 155 million pounds ($213 million), versus last month’s guidance of about 160 million pounds and 156 million pounds made in 2020-21.

Currys said like-for-like revenue fell 5% in the 10 weeks to Jan. 8 year-on-year, but was up 4% against the same period in 2019-20, before the pandemic impacted trading.

UK & Ireland revenue fell 6% year-on-year, while international revenue (the Nordics and Greece) fell 3% year-on-year.

The group, previously known as Dixons Carphone (LON:), said the overall UK technology market was down 10% compared to last year’s peak period.

“Currys came through this market turbulence well. We gained share in the UK, extending our market leadership. At the same time, we focused on profitable sales, with good discipline on margin, cost and stock,” said Chief Executive Alex Baldock.

He said the group had exited the peak period with stock in a good position although it was continuing to face into uncertain demand and supply chain disruption which meant there were some areas where availability “remains challenged”.

Currys maintained its medium-term guidance – free cash flow generation of more than 1 billion pounds over 2019-20 to 2023-24 and an adjusted EBIT margin of at least 4.0% by 2023-24.

($1 = 0.7285 pounds)

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