Currys reported a significant increase in sales over the summer, driven by consumer demand for televisions during the World Cup and sales of fans and air conditioning units amid heatwaves. The company's performance bucks the trend of a challenging British high street, which has seen consumer confidence dented by inflation fears and higher fuel prices.
In the 17 weeks leading up to August 29, Currys achieved a 6% rise in like-for-like sales in Britain, expanding its market share. The company's Nordics business also showed strong growth, with a 9% increase in sales during the same period. Overall group sales growth reached 7%, supported by the strong performance in these key categories. The retailer has maintained its annual financial guidance, expressing confidence in meeting market forecasts. Currys is currently undertaking a £50 million share buyback program, having already completed £23 million, and expects to finish the year with net cash exceeding its £100 million target.
Fredrik Tønnesen, who took over as Group Chief Executive on August 3, has seen a positive start to his tenure. Tønnesen, who previously led Currys' Nordic business for over two decades, noted continued momentum across the group, with growth in both physical stores and online channels, as well as in new product categories, business-to-business sales, and services. He stated that in the UK and Ireland, the company gained share in every category, even in a flat market, with the World Cup and summer heatwaves providing additional support. The Nordic market also saw share gains across most categories and countries.
Currys' financial outlook remains robust. In May, the company increased its annual profit guidance to between £180 million and £190 million, later revising it upwards to £191 million. Shares of the company saw a slight dip of 0.4% to 151.10p on Thursday morning, though they have risen more than 12% over the past year.
Tønnesen inherits leadership at a time when the company faces new challenges, including rising employment and energy costs, and business rates for its significant physical retail presence, alongside competition from online rivals. His predecessor, Alex Baldock, had previously steered the company through challenges such as legacy contracts from Carphone Warehouse, a weak online presence, and underperforming Nordic operations. Under Baldock, Currys improved its position with small business customers and strengthened its Nordic operations, which now contribute approximately 40% of group revenue. Tønnesen, who began his career at Currys, is expected to leverage his extensive experience, particularly from the Nordic business, to navigate the current economic climate. Analysts suggest a continued focus on recurring revenue streams, which are less sensitive to economic downturns, may be a strategic priority for the new CEO. The company's strengthened net cash position provides a financial buffer to manage potential market fluctuations.