As a result of stronger-than-anticipated sales in the British Isles, Currys has raised its annual profit forecast.
The merged Dixons Retail and Carphone Warehouse retailer now anticipates adjusted pre-tax profits between £110 million and £120 million for the year ending April 29.
Due to adverse trading conditions in the Nordic countries, the company lowered its full-year profit projection to approximately £104 million in March.
Although it acknowledged today that the regional consumer environment remained challenging, the company stated that it was making progress towards eliminating £25 million in annual expenses.
Currys saw better-than-expected performance in the United Kingdom and Ireland, particularly in the final two months of the fiscal year, and now expects underlying profits to have increased by more than 40 percent in the region.
The London-based company recorded net debts of £100 million in April, below its previous estimate of £150 million.
Currys shares surged 5.45% to 59 pence on Monday, leading the FTSE 350 Index.
However, they have decreased by approximately 58% over the past two years.
The company’s new earnings forecast is substantially less than the £186 million it made last year when it benefited from a surge in-store purchases and drastic cost reductions.
Currys warned last summer that future profits would be lower as the cost-of-living crisis forced consumers to reduce spending on non-essential items.
While competitors cut prices, its Scandinavian firm had extra inventory.
Russ Mould, investment director at AJ Bell, stated, ‘For a long time, the Nordics arm discreetly did the business for Currys, serving affluent customers, but what at first appeared to be a short-term problem of competitors selling off excess stock at a discount has become a persistent problem.
In March, regional CEO Erik Snsterud left, and Frederik Tnnesen took over.
During the early phases of the Covid-19 pandemic, people purchased more laptops, televisions, and other home appliances online as a result of lockdown restrictions and the increase in the number of people working from home.
After these constraints were lifted, Currys’ like-for-like sales fell 7% last year.
Adam Vettese, an analyst at the trading platform eToro, remarked, “While the electrical retailer’s profit upgrade is a welcome development, it continues to struggle in a challenging retail environment.”
