Currys’ Share Price Surged 8.79% on Peak Period Trading Update

The Currys PLC (LON: CURY) share price surged 8.79% after releasing a trading update for the 10 weeks that ended 6 January 2024, its peak trading period. In the UK and Ireland, the peak like-for-like revenue marked a decrease of 3%, yet this was counterbalanced by a robust profit performance underpinned by stable gross margins and continued cost-saving measures. 

The sales narrative was mixed, with a strong showing in mobile sales, but weaker trends in the TV and computing sectors somewhat offset this. A significant highlight was the growth in all service areas, pivotal in driving margin growth and cementing customer loyalty. 

Notably, there was a record adoption of credit, marked by a 20.6% increase year-over-year, translating to 2.2 million active credit customers. Additionally, the adoption of Care & Repair services increased by 1.7 percentage points. ID Mobile exhibited remarkable growth in the mobile sector, expanding its subscriber base by 29% year-over-year to 1.6 million.

In the Nordics, the peak like-for-like revenue experienced a 2% decline. However, there were improving sales trends compared to the year's first half. Sales growth was particularly notable in Norway, but this was somewhat offset by performances in other countries, especially Finland.

The product mix in the Nordics presented an interesting dynamic. There was good sales performance in domestic appliances, but weaker trends in TV sales counterbalanced this. Despite the intense competition, the gross margin in this region saw a significant uplift, primarily due to a better balance of sales and margin.

Looking at the broader picture, the current year's financial guidance for the group is promising. The adjusted profit before tax is expected to be around £105-115 million, surpassing consensus expectations. This projection suggests a healthy financial status for the group, indicating resilience and strategic adaptability in challenging market conditions.

Currys share price. 

The Currys share price surged 8.79% to trade at 49.15p from Wednesday’s closing price of 45.18p.