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Currys sees weaker sales ahead of Christmas

by LLB Reporter
15th Dec 21 10:10 am

First half results from electrical goods retailer Currys suggests its key trading period is being affected by the impact of Omicron on consumer sentiment.

While the results themselves are pretty strong, it is the comments on current trading which have helped short circuit the share price.

Currys specifically references the new variant, and it may have also seen demand for Christmas gifts brought forward as shoppers looked to get ahead of potential shortages. While it has done a decent job of mitigating them, Currys is not immune from supply chain issues and extra costs itself.

“The big danger is that having enjoyed a bumper period after the pandemic hit as people splashed out on lots of consumer electronics, the same level of demand just isn’t there anymore,” said AJ Bell’s Russ Mould.

“While Currys is sticking with its full year guidance for now, thanks to its strong first half, there is an obvious risk the second half is sufficiently bad to require that guidance to be trimmed or, in the worst case scenario, slashed.

“Shareholders can take some comfort from the company’s strong balance sheet position and faltering competition which should see Currys hold on to market share gains. Underpinning this is Currys’ improved customer service, something which could prove crucial to its fortunes in the longer term.”

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