Currys (LON:CURY) Releases Earnings Results

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

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

Shares of LON CURY opened at GBX 138.22 on Thursday. The stock has a market cap of £1.46 billion, a P/E ratio of 14.55 and a beta of 1.31. Currys has a twelve month low of GBX 82 and a twelve month high of GBX 147.20. The stock has a 50 day moving average of GBX 134.34 and a two-hundred day moving average of GBX 126.46. The company has a current ratio of 0.86, a quick ratio of 0.29 and a debt-to-equity ratio of 45.83.

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

Wall Street Analyst Weigh In

CURY has been the subject of several analyst reports. Berenberg Bank upped their price objective on Currys from GBX 200 to GBX 210 and gave the stock a “buy” rating in a research report on Thursday. Citigroup boosted their target price on Currys from GBX 150 to GBX 166 and gave the stock a “buy” rating in a research note on Wednesday, October 29th. Three research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Currys presently has a consensus rating of “Buy” and a consensus target price of GBX 168.67.

Currys Company Profile

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.