Curry’s the UK equivalent of JB Hi Fi is facing the same problem as local retailers, as consumers shop for discount bargains, the big difference is that the UK CE retailer appears to have been able to hold onto margins despite a fall in revenues.
In the 10 weeks to January 6, group like-for-like sales slipped by 3% compared with the same period last year, but the CE and appliance Company said it also delivered “robust profits”.
Like-for-like sales in the UK and Ireland fell by 3%, while sales in the Nordics and Greece declined by 2% and 4% respectively.
The electricals retailer this week upgraded its group adjusted profit before tax to be “ahead of consensus expectations” at A$204M to A224M.
The group said stable gross margin and continued cost savings helped deliver profits, while there was also strong growth from all of their services operations where profits are significantly ahead of the profits generated from their store operations.
Currys also saw strong sales in mobile, but these were offset by “weaker trends in TV and computing.”
Retail Magazine reports that Currys is expected to finish the financial year in a net cash position.
Group chief executive Alex Baldock said: “We’ve had a successful peak trading period, for customers who are more satisfied than ever, and for profits and cash flow. Our markets may be no easier, but we now expect full-year profits to be above consensus expectations.
“In the UK and Ireland, we’ve kept up our encouraging momentum, in particular selling more of the services that boost margins and build customers for life.
“We’re also getting the Nordics back on track after a disciplined peak on margins and costs. In all markets, we’ve taken big strides in customer satisfaction through the hard work and expertise of our more engaged colleagues.
“We’re in a healthy financial position and our strategy is delivering a consistently improving customer proposition. As consumer confidence improves, we’ll be well placed to build on these strong foundations, to benefit shareholders as well as colleagues and customers.
