Electricals retailer Currys has forecast an 18% rise in annual profit after reporting stronger-than-expected sales in its core UK and Ireland market, defying broader weakness across the retail sector.
The company, which sells consumer electronics and household appliances including laptops, gaming consoles, televisions, fridges, washing machines and mobile phones, said underlying performance had remained “very solid” in recent months. It also noted that it has yet to see any material impact from geopolitical tensions linked to the Middle East conflict, while energy costs remain well hedged for the coming financial year.
For the year to May 2, Currys now expects adjusted profit before tax of around £191m, an upgrade from £162m in the previous year and above earlier guidance of £180m to £190m.
The retailer said like-for-like sales in its Nordic operations rose 6% over the year, while group-wide like-for-like sales increased 4%, reflecting steady demand across its core product categories. Management credited the performance to continued execution of its turnaround strategy and resilient consumer demand for essential electrical goods.
Chief executive Alex Baldock said the group’s strong balance sheet leaves it well placed to handle potential volatility ahead, while also enabling investment in growth opportunities and continued returns to shareholders. He said the business is positioned to withstand shifting market conditions even as consumer sentiment becomes more cautious.
Recent data has shown signs of strain in UK household spending. A survey by Barclays indicated that consumers reduced spending last month for the first time since late 2024, with particular weakness in big-ticket purchases. The decline comes amid concerns about the wider economic impact of the Iran war and persistent inflationary pressures affecting household budgets.
Analysts have noted that while essential goods continue to hold up, discretionary spending remains under pressure as households prioritise savings and delay larger purchases. This broader environment has weighed on parts of the retail sector, making Currys’ performance stand out.
In March, the company announced that Alex Baldock, who has led its turnaround over the past eight years, will step down from his role later this year. He is set to become chief executive of Boots in the autumn, marking a leadership transition at a time when Currys is continuing to stabilise its growth trajectory.
Despite ongoing uncertainty in the global and domestic economy, Currys’ latest update suggests the retailer has managed to maintain momentum in a challenging trading landscape.
