Following today’s release of Currys’ figures for the year ending 3 May 2025; Oliver Maddison, retail analyst at GlobalData, a leading data and analytics company, offers her view: “Currys saw healthy group sales growth of 2.7% in its FY2024/25, while delivering on its uprated profit guidance of £162m, with its growing service offering helping to boost its adjusted profit before tax by 37.3%. This robust profit performance, alongside a strong cash position, prompted the group’s board to propose a cash dividend of 1.5p per share, higher than its previous estimate of 1.3p. Investors took heart at this news, with Currys’ share price jumping around 7% this morning. Sales growth was primarily driven by its UK and Ireland business which continued to outperform (+6.4%), while the Nordic business’ 2.5% sales decline masked an upward trajectory throughout the year and was exacerbated by currency fluctuations.
“After a strong H1 performance in the UK and Ireland, with growth of 5.7%, Currys managed to build on this, with H2 sales rising 6.9%. This was despite softer sales during peak trading (+2% l-f-l), meaning that Currys is carrying strong momentum into its current financial year. Currys’ strong performance in the UK and Ireland came primarily from the strong growth of services and solutions sales, with recurring service revenue growing by 12.0% as well as 14% growth in credit sales and a 26% rise in iD Mobile subscribers. Service revenues will continue to be key to Currys’ strategy due to their positive effects on gross margins, which grew by a further 0.2ppts.
“Despite its strong performance, Currys risks being squeezed across both channels with resurgent performances from its main omnichannel rival, John Lewis & Partners, and online pureplay electricals specialist, AO. John Lewis’ reintroduction of its Never Knowingly Undersold price matching scheme saw its technology sales grow by 6.8% in its H2 to 25 January, which was likely a slight dampener on Currys’ peak trading, and is indicative of momentum at the department store. Meanwhile, AO saw its business-to-consumer (B2C) revenue grow by 11.9% in its year to 31 March, similarly boosted by services. AO’s range expansion could threaten the gains that Currys has made outside of the major kitchen appliances category, and its intention to start its own mobile carrier risks being a substantial competitor to Currys’ golden goose, iD Mobile. To remain competitive, Currys must continue to emphasise its superior range and staff expertise, as well as its own, wider ranging, price guarantee.”
