Sales decline eases at Currys, but Nordics still a drag

(Sharecast News) - Electrical retailer Currys saw its sales decline ease slightly in the first quarter but noted a continuing "challenging" trading environment, especially within its Nordics division. The company, which operates 823 stores across eight countries, reported a 4% drop in like-for-like (LFL) sales for the first 17 weeks of the financial year, ended 26 August. That compared with the 7% decline registered during the last financial year as a whole.

In the UK & Ireland, which accounts for 53% of group revenue, LFL sales fell 2% (-7% last year), with revenues trends picking up in July and August. ThHe company said robust sales in domestic appliances and mobile phones was offset by weakness in other categories like computing.

In the Nordics, where it trades as Elkjøp and generates 40% of group revenue, LFL sales were down 8% (-10% last year), and the company said it is taking actions to hit cost-savings targets, which include job cuts, offshoring and contractor removal.

In its smaller Greek division, branded Kotsovolos, LFL sales growth slowed to 3% during the period, as it saw some short-term impact from wildfires on footfall last month. LFL sales in Greece had jumped 12% the previous financial year.

"Our priorities this year are simple: to keep the UK&I's encouraging momentum going, and to get the Nordics back on track," said chief executive Alex Baldock.

"We're making good progress on both, in what continues to be a challenging economic environment. We remain confident that we're building a stronger business that's resilient today and fit to prosper in the longer term."