Shares of the FTSE 250-listed Currys PLC (GB:CURY) soared over 12% after the retailer upgraded its profit forecast for FY25. The company expects its adjusted pre-tax profits to fall between £145 million and £155 million, surpassing the consensus forecast of £140 million. This also marks a 31% increase from the previous fiscal year. The upgrade was mainly driven by its strong festive sales on Black Friday and Christmas.
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Currys is a tech retailer and after-sales service provider, operating over 300 stores across the UK.
Currys Reports Strong Trading Performance
For its peak period of 10 weeks ending on January 4, Currys reported like-for-like revenue growth of 2% in the UK & Ireland. This growth was fueled by strong demand for mobile phones, gaming devices, and premium computing products, along with steady gross margins. Meanwhile, like-for-like revenues grew by 1% in the Nordics. Moreover, the cost savings in the Nordics helped counteract inflationary pressures, highlighting the company’s continued emphasis on operational efficiency.
Currys attributed its success to effective holiday promotions, a strong stock of premium products, and investments in both its online and physical store platforms. The company also highlighted that AI laptops, where Currys holds a 75% market share, and high-end mobiles were particularly popular, compensating for weaker television sales.
Moving forward, Currys expects continued growth in free cash flow generation in the coming years. Backed by its strong cash flow and ongoing business momentum, the company plans to announce a final dividend of approximately 1.3p when releasing the full-year results in July.
Is Currys a Good Share to Buy?
According to TipRanks, CURY stock has a Moderate Buy rating, backed by three Buy and three Hold recommendations. The Currys share price target is 104.0p, which implies a change of 14% from the current trading level.
