Electricals retailer Currys has today beaten annual profit expectations, sending its shares up 10%, and said it would cap prices of dozens of products to win market share as consumers cut spending.
It reported adjusted pretax profit of £186m for the year ended April 30, topping the £152m forecast by analysts.
The retailer, which sells a wide range of products from mobile phones to refrigerators, forecast a 2022-23 profit of between £130m and £150m citing uncertainty about consumer spending.
Despite forecasting lower profits and margin pressures, Currys said it expects to continue generating cash this year.
"Inflation is very likely to create a headwind to consumer spending and impact sales, particularly in some of our more discretionary categories," CEO Alex Baldock said in a statement.
"Markets seemed poised for hefty guidance downgrades, so whilst Currys expects medium-term margin growth to slow, the fact there might be growth at all is being rewarded," Hargreaves analyst Matt Britzman said in a note.
UK rival AO World, which in April also warned on profits this year, said this week it would raise £40m in new equity to bolster its finances after its stock took a tumble this week on cash crunch fears.
