Currys has announced a strong start to its new financial year, with sales growth across the UK, Ireland and Nordics, and a £50m share buyback scheme as the electricals retailer aims to reward shareholders.
In a trading update for the 17 weeks to 30 August, the FTSE 250 company reported that like-for-like revenue in the UK & Ireland increased by three per cent, driven by double-digit gains in newer categories such as gaming, AI computing and large domestic appliances, as reported by City AM.
Sales of cooling products and coffee machines remained strong throughout the summer months, although demand for televisions, tablets, and air fryers decreased.
Recurring services continued to perform well, with customer credit adoption rising to 23.3 per cent and iD Mobile subscribers increasing 22 per cent year-on-year to 2.3m.
Group chief executive Alex Baldock stated that the mobile business was on track to exceed its 2.5m target before the end of the year.
Margins remained stable in the UK despite cost pressures, with higher volumes providing operating leverage.
Challenging high street backdrop
However, Currys’ update comes amidst a mixed backdrop for the British high street.
The retailer’s website experienced disruption earlier this week after planned maintenance overran, leaving frustrated shoppers unable to make online purchases.
Shares have also fallen around 12 per cent since a July peak, though they remain nearly 20 per cent higher so far in 2025.
The firm has been outspoken regarding government policy, with Baldock cautioning in August that increased business rates could lead to “higher prices, lower investment, fewer jobs and more boarded-up shops.”
Deutsche Bank analysts have also indicated that decelerating wage growth may start to pressure retailers in the forthcoming months.
Nevertheless, Currys maintained a positive outlook as it announced a reduction in its pension deficit from £403m in 2022 to £134m, with contributions expected to significantly decrease from 2026.
The company also unveiled a £50m buyback in conjunction with a £25m dividend, bringing total shareholder returns for this year to £75m.
Baldock commented: “We’re on a good track at Currys, with growing momentum… We’re confident profit margins will step forward again this year.”
