Currys has raised its profit outlook for 2022/23 after trading in the final two months of its fiscal year was ahead of expectations.
As a result, the UK electrical retailer expects an adjusted pre-tax profit for the year to 29 April of £110 million to £120 million, compared with a previous guidance of £104 million.
Although the £104 million figure is ahead of previous guidance, it is less than the £186 million it made in 2021/22.
Click here to sign up for our newsletter
However, in its trading update, like-for-like sales in the UK and Ireland fell by 4% in the second half, compared with a 10% drop in the first.
Overall group sales were also down by 7% for the full year.
According to the company, its improved profits were “driven by continued gross margin improvements and management focus on cost efficiencies”.
However, Currys international business is also expected to deliver EBIT “materially lower”, compared to the same period last year. It added that “structural changes” are in progress and will take out at least £25m of annual costs at the Nordics division, with one-off cash costs of between £15 million and £20 million.
Image credit: Shutterstock
