- Total revenue is down 7% to £4.47 billion.
- Currys announced a loss before tax of £548 million.
- Electric retailer reduces their profit guidance.
Currys reported its interim results on Thursday, which saw the group cut its guidance after reporting a half-year loss.
The British electric retailer saw its total revenue fall 7% to £4.47 billion, with like-for-like sales down 8%. However, the firm reported profit growth in its UK and Ireland market as gross margin improvements and cost savings offset its sales decline.
Its International market decreased 3% year-on-year, with Currys stating due to actions taken in the face of competitors’ heavy discounting.
As a result, Currys reported a loss before tax of £548 million compared to a profit of £48 million in the prior year.
Group Chief Executive Alex Baldock said, “Currys UK&I performance continues to strengthen, and is showing real momentum, reflecting good progress in our transformation.” International, however, has had a tough period, and faces short-term but intense pressures from a disrupted market.”
Baldock added that its International business, which has consistently delivered growth, “has had a difficult first half with margins sharply down.” As a result of lower demand and excess stock, competitors discounting has shaken up the market.
Looking forward, Currys expects weaker performance in the second half. The company has reduced its profit expectations as it heads into the key Christmas period. The group anticipates a profit before tax of between £100 million and £125 million, compared to prior expectations of £125 million and £145 million.
The stock has tumbled 40% so far this year as the current economic climate continues to harm retailers, with more consumers looking to cut back on non-essential items.