British electricals retailer Currys has today stuck to its annual guidance as it reported a first-half loss in line with last year, hurt by a subdued market for discretionary spending and particular weakness in the Nordics market.
The seller of cookers, fridges, washing machines, TVs, computers and mobile phones had already warned that the outlook for its 2023/24 year would be tough as consumers across Europe grapple with persistent inflation and high borrowing costs.
The first half is seasonally much weaker for Currys, as it ends in October before the run in to Black Friday and Christmas.
The group reported an adjusted pretax loss of £16m for the six months to October 28, compared to a loss of £17m the same time last year, on revenue down 7% to £4.2 billion.
Like-for-like sales fell 4%, with the UK & Ireland down 3% and the Nordics down 6%.
"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," CEO Alex Baldock said.
"We're making good progress on all these in a still challenging economic environment," the CEO added.
Currys said trading since the period end had been consistent with the board's expectations.
Prior to the update, analysts were on average forecasting a full-year adjusted pretax profit of £103m, down from the £119m made in 2022/23.
Last month, Currys sold its Greek business and said it would use the proceeds of about £156m to cut debt and reduce its pension fund's deficit.
Shares in Currys have fallen 16% in 2023.
Mike Ashley's Frasers Group has amassed a 12.7% stake in Currys, mostly through financial instruments. Frasers has said the holding is "supportive" and it wants to collaborate with Currys.
