Electronics retailer Currys has reported a significant uplift in sales, driven by strong demand for AI technology and new gaming launches, alongside a recovery in its Nordics operations. The company announced revenues of £4.2 billion for the six months ending November, marking a 4% like-for-like increase compared to the previous year.
Adjusted pre-tax profits more than doubled, reaching £22 million, despite what Currys described as a 'muted' consumer environment and 'unhelpful' cost pressures. In the UK and Ireland, where Currys operates nearly 300 stores, the computing sector was the strongest performer, driven by AI innovations and new video games.
The retailer also highlighted robust demand for gaming accessories, emerging health and beauty technologies, and a 12% jump in Windows laptop sales. Mobile products contributed positively, with its iD mobile network brand expanding its market share. However, sales of consumer electronics such as TVs and speakers dipped, attributed to a spike in demand during the men's Euro 2024 football tournament last year.
Chief executive Alex Baldock said it was 'pleasing that strong top-line growth is translating into improved profitability', but added that 'in the UK and Ireland, the consumer environment is more muted, and cost headwinds are unhelpful'. Currys noted that profits in the UK were weighed down by increases to the national minimum wage and employer national insurance contributions from last year's autumn budget.
Despite these challenges, Currys hailed an improved performance for its Nordics arm after launching a turnaround for the struggling business. Revenues in the region, which has more than 400 stores, increased by 4% on a like-for-like basis, and earnings grew. Shares in Currys jumped by about a tenth in early trading on Thursday.
