Currys could reveal Black Friday boost or Budget hit in interim results

Saturday 07 December 2024 10:07 am

Electronics retailer Currys will reveal how a lot influence the latest Price range is more likely to have on its gross sales subsequent week.

Buyers will hope the chain has carried on a latest monetary restoration into the autumn when it broadcasts its interim outcomes on 12 December.

The corporate is anticipated to publish a revenue of £137m for the half ending October, up 16 per cent on the identical interval final yr.

Currys has turned its fortunes round since struggling amid the cost-of-living disaster, partly by lowering its overheads.

It reported 5 per cent progress in gross sales within the UK and Eire throughout the 4 months to August.

The expansion was partly pushed by folks visiting its shops to be taught extra about synthetic intelligence expertise from its in-store consultants.

Currys has lengthy promoted its providing of face-to-face expertise recommendation to prospects in its shops as a differentiator, and it just lately mentioned AI is “bringing pleasure and innovation to prospects”.

The outcomes are anticipated to shed some mild on whether or not Currys transformed that curiosity right into a bumper Black Friday gross sales weekend.

Nevertheless, the chain was hit with a downgrade from analysts at Deutsche Financial institution in early December, primarily all the way down to the potential influence of inflation on its enterprise.

Deutsche Financial institution cited “warning on the size of the Price range influence, each the magnitude of price inflation and potential for return of class spending”.

Currys was amongst a gaggle of outlets that signed a letter criticising Labour’s Price range tax rises on companies.

The letter mentioned the measures would result in job cuts, and would price the business £7.06bn a yr.

Organized by the British Retail Consortium, it was additionally signed by family names together with Amazon, Aldi, Boots, B&Q, Greggs, JD Sports activities, Marks & Spencer, Subsequent and Primark.

Derren Nathan, head of fairness analysis at Hargreaves Lansdown, mentioned: “Currys has seen final yr’s progress spill over into the present buying and selling interval, and subsequent week we’ll discover out if that’s persevered for the entire of the primary half.

“The UK’s retail atmosphere has had a blended few months.

“And whereas shopper confidence has picked up recently, a lot nonetheless hinges on the very important festive buying and selling season and of explicit curiosity shall be whether or not the most recent AI-powered family digital gadgets have offered nicely on Black Friday.

“Buyers may even be hoping for a restoration within the Nordic area which has been dragging on group efficiency.

“Administration’s beforehand hinted on the return of dividend funds, so any additional route on that can be one thing to look at, however there could be no ensures.”