Currys (LON:CURY) Issues Earnings Results

Currys (LON:CURY) issued its earnings results on Thursday. The company reported GBX 1.60 EPS for the quarter, Digital Look Earnings reports. Currys had a return on equity of 9.53% and a net margin of 2.38%.

Here are the key takeaways from Currys’ conference call:

• Group results: Group revenue was £4.2bn (+8% y/y), adjusted EBIT rose 32% to £54m, free cash flow was £84m (+68%) and closing net cash was £133m, with £46m returned to shareholders (£16m dividend, £30m buyback).
• Nordics acceleration: Nordic sales grew c.11% (cc) with like‑for‑like +4% and adjusted EBIT almost doubled to £35m, lifting EBIT margin +90bps to 2% and materially improving free cash flow despite higher capex.
• UK growth & strategic traction: UK revenue +6% (LFL +4%) with services up 11%, B2B +16%, iD Mobile subscribers +21% to 2.4m and services/solutions now >30% of sales, driving stickier, higher‑margin recurring revenue.
• UK margin headwinds: Government-driven colleague cost increases (National Insurance and National Living Wage) reduced UK gross margin by ~40bps and lowered UK adjusted EBIT by ~£4m, with a mid‑single‑digit million headwind expected next year.
• IT migration delay & higher exceptionals: Cloud migration was paused at ~90% to protect peak trading, causing dual running costs and raising full‑year exceptional cash outflow guidance to ~£40m (from £30m), delaying some future operating cost benefits.

Currys Price Performance

LON:CURY opened at GBX 137.98 on Thursday. The firm’s fifty day moving average is GBX 134.34 and its two-hundred day moving average is GBX 126.46. The firm has a market cap of £1.45 billion, a price-to-earnings ratio of 14.52 and a beta of 1.31. The company has a debt-to-equity ratio of 45.83, a quick ratio of 0.29 and a current ratio of 0.86. Currys has a one year low of GBX 82 and a one year high of GBX 147.20.

Currys declared that its Board of Directors has initiated a share buyback program on Thursday, September 4th that permits the company to repurchase 0 shares. This repurchase authorization permits the company to reacquire shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on CURY. Berenberg Bank boosted their price target on shares of Currys from GBX 200 to GBX 210 and gave the company a “buy” rating in a research report on Thursday. Citigroup increased their target price on Currys from GBX 150 to GBX 166 and gave the stock a “buy” rating in a research report on Wednesday, October 29th. Three investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of GBX 168.67.

About Currys

Currys plc is a leading omnichannel retailer of technology products and services, operating online and through over 800
stores in 8 countries. We Help Everyone Enjoy Amazing Technology, however they choose to shop with us.

In the UK & Ireland we trade as Currys; in the Nordics under the Elkjøp brand and as Kotsovolos in Greece.