Currys (CURY) stock dipped 1.3% in early London trading on Wednesday morning, reaching 146.40p, even as the electronics retailer posted a solid trading update showing 7% group like-for-like revenue growth for the 17 weeks ending August 29.
The UK and Ireland segment delivered 6% like-for-like growth, while the Nordics came in even stronger at 9%. Management said it is comfortable with current market consensus and left full-year guidance unchanged.
In the UK and Ireland, growth came from both stores and online. New categories and business-to-business sales posted double-digit gains. The company also noted market share gains across all major categories, in what was otherwise a broadly flat market.
Currys said the market got a modest lift of around 2 percentage points from the World Cup and summer heatwaves.
Recurring Services revenue continued to build. Flexpay adoption climbed 30 basis points year-on-year to 23.6%, and iD Mobile subscribers grew 16% to more than 2.7 million.
The Nordics performance was led by white goods and mobile, with broad-based gains across stores and online. The region also saw market share growth in most countries, though comparatives were soft.
Gross margin was described as stable across both regions, supported by tight cost control.
Currys confirmed its £50 million share buyback is underway, with £23 million completed so far. The company now expects year-end net cash to land well above its £100 million target.
The company said it is targeting continued growth in higher-margin recurring Services revenue, with a goal of reaching at least 2.8 million iD Mobile subscribers by year-end.
Citi said it expected a “materially positive share price reaction” to the update, citing the strong trading numbers and reiterated guidance. The bank added that the stock had been weak heading into the print, which it saw as an additional tailwind.
Panmure Liberum, Currys’ corporate broker, kept its Buy rating and 200p target price. It said the strong start to the year created “meaningful upgrade potential” due to the group’s high operational gearing.
The broker estimated that every one percentage point gain in like-for-like sales across UK, Ireland and the Nordics adds roughly £12.5 million to group profit, equal to about 6.5% of financial year 2026 adjusted pre-tax profit.
Peel Hunt also held its Buy rating, with a 182p target. It said it expected to push through a profit forecast upgrade of between 1% and 3%.
Peel Hunt was careful to note that the first half of the financial year typically accounts for only 10% to 15% of full-year profit. That means a strong peak trading season will be needed before brokers will feel comfortable making larger estimate upgrades.
On valuation, the stock is trading at fewer than 10 times forecast earnings. Panmure Liberum put the 2027 price-to-earnings multiple at 10.3 times.
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