LONDON (Reuters) -British appliance and electronics retailer Currys (LON:CURY) on Thursday forecast full year profit ahead of market expectations after stable gross margins and cost savings offset a fall in underlying sales over the Christmas trading period.
The seller of cookers, fridges, washing machines, TVs, computers and mobile phones, said it now expected a full year 2023/24 adjusted profit before tax of 105-115 million pounds ($133-146 million).
Prior to the update, analysts were on average forecasting 104 million pounds, down from the 119 million pounds made in 2022/23.
Consumers across Europe are grappling with persistent inflation and high borrowing costs.
Currys said like-for-like revenue in the UK & Ireland business fell 3% in the 10 weeks to Jan. 6, with strong sales in mobile, offset by weaker trends in TVs and computing.
In addition to stable gross margins, that were helped by strong growth in services such as credit and repair schemes, profits benefited from continued cost savings.
In the Nordics division, like-for-like revenue fell 2%, but gross margins were up strongly.
"We're in a healthy financial position, and our strategy is delivering a consistently improving customer proposition," CEO Alex Baldock said.
"As consumer confidence improves, we'll be well placed to build on these strong foundations."
In November, Currys sold its Greek business and said it would use the proceeds of about 156 million pounds to cut debt and reduce its pension fund's deficit.
Shares in Currys have fallen 24% over the last year.
Mike Ashley's Frasers Group (LON:FRAS) has amassed an over 11% stake in Currys, partly through financial instruments. Frasers has said the holding is "supportive" and it wants to collaborate with Currys.
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