Currys has nudged down its profit guidance after suffering a decline in sales during the crucial Black Friday and Christmas trading period.
Like-for-like sales in the retailer’s core UK and Ireland business fell 6% year on year and were down 2% compared to 2019 levels during the 10 weeks to January 8.
Despite the drop in sales, Currys insisted it made market share gains in a “softer” electricals market that was down 10% year on year. It hailed growth in gaming and large domestic appliances during the period.
The retailer’s international business grew like-for-like sales 14% on a two-year basis but trailed last year’s performance by 3%.
The group as a whole posted a 5% decline in like for likes compared to 2020 but delivered a 4% uplift on pre-pandemic levels.
Currys said full-year profit before tax is now expected to come in at £155m, having previously forecast £160m at its half-year results in December.
The update comes just days after Sainsbury’s revealed sales at its Argos business tumbled during the golden quarter. Electrical retailers are grappling with supply chain problems and a shortage of in-demand technology and gaming consoles such as Apple products and the PlayStation5.
Argos saw a 16.1% drop off in like-for-like sales in the 16 weeks to January 8, compared to a year ago. On a two-year basis, sales were down 9.1%.
Currys chief executive Alex Baldock described the tech market as “challenging”, highlighting “uneven consumer demand and supply disruption”.
He said: “Customer demand for some tech was strong. This was a gamers’ Christmas, the year that virtual reality broke into the mainstream and when consoles flew off the shelves.
“Oculus Quest 2 and PS5 were stars. Appliances large and small also enjoyed strong sales, as consumers continued to kit out their homes. Still, the overall UK tech market was down 10% compared to last year’s peak period.
“Currys came through this market turbulence well. We gained share in the UK, extending our market leadership. At the same time, we focused on profitable sales, with good discipline on margin, cost and stock.”
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