Key Highlights
- Group like-for-like revenue increased 7% during the 17-week period ending August 29
- UK and Ireland division delivered 6% growth, while Nordic operations surged 9%
- Management reaffirmed full-year outlook, stating comfort with current market expectations
- Shares declined 1.3% during morning London session despite strong trading performance
- Analysts at Panmure Liberum and Peel Hunt reaffirmed Buy recommendations with price targets of 200p and 182p
Shares of Currys (CURY) declined 1.3% during Wednesday’s early London session, trading at 146.40p, despite the electronics retailer unveiling encouraging trading results that showed 7% group like-for-like revenue expansion for the 17-week period concluded on August 29.
The retailer’s UK and Ireland operations achieved 6% like-for-like expansion, while Nordic territories demonstrated even more robust performance with 9% growth. Company leadership expressed satisfaction with prevailing market consensus forecasts and maintained its existing full-year outlook.
Within the UK and Ireland division, expansion was driven by contributions from both physical retail locations and digital channels. Emerging product categories and corporate sales channels registered double-digit percentage increases. The retailer also captured additional market share across all principal product segments, even as the overall market remained essentially flat.
According to Currys, the market received a modest boost of approximately 2 percentage points attributable to the World Cup tournament and unseasonably warm summer weather.
Recurring Services turnover maintained its upward trajectory. Flexpay penetration increased 30 basis points compared to the prior year, reaching 23.6%, while iD Mobile customer accounts expanded 16% to exceed 2.7 million subscribers.
Nordic performance was propelled by strong demand for major appliances and mobile devices, with widespread gains registered across both retail formats and online platforms. The region also captured market share gains in the majority of operating countries, albeit against relatively easy year-over-year comparisons.
Gross profit margin remained stable in both geographic segments, underpinned by disciplined expense management.
Share Repurchase Update and Financial Position
The electronics retailer confirmed its £50 million share repurchase program is progressing, with £23 million executed to date. Management now anticipates year-end net cash balances will significantly exceed the £100 million objective.
Strategic priorities include accelerating growth in higher-margin recurring Services revenue, with management targeting a minimum of 2.8 million iD Mobile customers by fiscal year-end.
Broker Commentary
Citi analysts anticipated a “materially positive share price reaction” following the release, pointing to the robust trading figures and confirmed guidance. The investment bank noted that shares had underperformed ahead of the announcement, which it viewed as providing additional upside potential.
Panmure Liberum, serving as the company’s corporate broker, maintained its Buy recommendation alongside a 200p price objective. The firm highlighted that the strong opening to the fiscal year establishes “meaningful upgrade potential” given the group’s substantial operational leverage.
The broker calculated that each percentage point improvement in like-for-like sales across UK, Ireland and Nordic markets contributes approximately £12.5 million to group profitability, representing roughly 6.5% of fiscal 2026 adjusted pretax profit expectations.
Peel Hunt similarly retained its Buy stance with a 182p target price. The firm indicated it anticipated implementing profit forecast increases ranging from 1% to 3%.
Peel Hunt emphasized that the fiscal first half traditionally generates just 10% to 15% of annual profitability. Consequently, strong performance during the critical peak trading period will be essential before analysts feel confident implementing more substantial estimate revisions.
From a valuation perspective, the shares trade below 10 times projected earnings. Panmure Liberum calculated the 2027 price-to-earnings ratio at 10.3 times.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
