Currys UK earnings slump amid cost of living crisis
Electronic goods retailer Currys has recorded a 40 per cent drop in earnings before interest and tax (EBIT) in its UK and Ireland arm for the six months to 28 October.
The retailer, which sells electrical products through 815 stores in 8 countries, including the UK and Ireland, the Nordics and Greece, said revenue fell four per cent to £4.1bn as customers continued to put off spending on big ticket items amid the cost of living crisis.
Revenue at its UK division fell three per cent to £2.2bn, while international revenue declined 11 per cent.
Alex Baldock, group chief executive, said: “Our priorities this year are simple: to get the Nordics back on track, to keep up the UK&I’s encouraging momentum, while strengthening our balance sheet and liquidity.
“We’re making good progress on all these in a still challenging economic environment. In the Nordics, our trusted brands have delivered substantial gross margin gains, which combined with strong cost discipline have resulted in significantly improved profits. There’s still a long way back to healthy Nordics performance, but we’re on the way.”
He added: “In the UK&I, profits are in line with expectations, as we focus on more profitable sales and growing the services that drive margins and customer lifetime value. Credit, Care & Repair and iD Mobile are all performing strongly, while colleague engagement and customer satisfaction continue to rise.”
Last month, the firm confirmed a £175m sale of its Greek and Cyprus arm, just two years after it took on the business.
The disposal is expected to be completed in the first quarter of 2024, and the firm intends to use the cash raised from the sale to reduce net debt.