Business

Retailer Currys cuts annual profit outlook after half-year loss

Profit warning comes as consumers in Europe feel the pinch from cost-of-living crisis

Curry’s revised its outlook for the year as consumers tightened their belts. Photograph: Simon Dawson/Bloomberg

Thu Dec 15 2022 - 07:53

Electrical retailer Currys cut its annual profit outlook on Thursday after reporting a half-year loss as a deepening cost-of-living crisis forces customers to cut down on non-essential spending.

The company, which operates in Britain, Ireland and the Nordic region among other markets, said adjusted pretax loss was £17 million (€19.8m) in the six months to October 29th, compared to a profit of £48 million a year earlier.

Curry’s said it now expected 2023 fiscal year profit before tax to be between £100 million and £125 million, down from the £130 million-£150 million range guided in July.

The profit warning from Currys comes as consumers in Europe, particularly in Britain, are feeling the pinch of surging energy and food bills, and businesses across sectors grapple with tight margins in the wake of soaring inflation.

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Currys chief executive Alex Baldock said in a statement that the company’s international business saw a difficult first half, with margins falling sharply as domestic competitors with excess stocks gave away heavy discounts. – Reuters

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