Currys has upheld annual guidance even though it reported total turnover had fallen since the start of the financial year.
The electricals retailer, created through the merger of Dixons Retail and Carphone Warehouse, reported a 4 per cent decline in comparable sales for the 17 weeks to 26 August.
Like-for-like revenue in Britain fell 2 per cent due to weak demand for computers and subdued performances in May and June, although the firm noted sales trends improving in the following two months.
Results: Currys reported a 4% fall in comparable sales for the 17 weeks to 26 August
At the same time, like-for-like turnover slumped by 8 per cent in the Nordics region, where the company has experienced a more difficult trading backdrop.
Currys’ Scandinavian arm has struggled for some time because of rivals engaging in significant discounting to rid themselves of excess stock amid a slowdown in demand for electrical products.
Because the company avoided offsetting higher goods inflation with price rises to maintain competitiveness, the division suffered an 82 per cent slump in core profits last year.
Yet the company said the segment’s gross margin has improved in recent months as a result of numerous measures, including stronger customer adoption of services.
Alex Baldock, chief executive of Currys, said: ‘Our priorities this year are simple: to keep the UK&I’s encouraging momentum going, and to get the Nordics back on track.
‘We’re making good progress on both, in what continues to be a challenging economic environment. We remain confident that we’re building a stronger business that’s resilient today and fit to prosper in the longer term.’
Currys also revealed that turnover grew modestly in Greece despite footfall being hit by the multiple wildfires that ravaged the country.
In mid-June, the group began a strategic review of its Greek business, with a sale being one of the possible outcomes, claiming that its record of profitability, leading market position, and brand strength were not reflected in the firm’s valuation.
On Thursday, Currys said the review was ‘progressing in line with plan’ and that it would fully inform investors in due course.
The company’s Greek division was the only one to see sales expand in the last fiscal year despite widespread inflationary pressures dampening consumer confidence.
Purchases of electrical goods also continued to be impacted by loosening Covid-related restrictions enabling people to spend less time at home and travel to the office more often.
However, Julie Palmer, a partner at Begbies Traynor, believes that easing cost-of-living concerns and the ‘relentless technology cycle’ could provide a headwind for the business.
She added: ‘Taken together, if the pressures on consumer spending power reduce and confidence returns, then Currys should look ahead to the key Christmas period with some excitement.’
Currys shares were 1.1 per cent higher at 49.4p on Thursday morning, although they have lost around a quarter of their value in the past 12 months.
