Electricals retailer Currys reported a 3% rise in group sales over the summer, buoyed by strong demand for cooling products during record-breaking heat, alongside encouraging developments in its pension review. The positive update sent shares surging 22% to 132 pence in early trading on Wednesday — their highest level in four years.
For the 17 weeks to the end of August, Currys said underlying sales in its largest market, the UK and Ireland, rose 3% as consumers rushed to buy air conditioners and fans during Britain’s hottest summer since records began in 1884. The company also highlighted strong sales of laptops equipped with artificial intelligence functions, a trend that extended to its Nordic operations, where revenues climbed 2%.
The upbeat trading statement was further bolstered by the completion of a triennial pension review, which significantly reduced the retailer’s future funding obligations. Currys announced that annual contributions to its pension scheme will be £13 million until March 2031, well below the £78 million per year it had previously anticipated through to 2028. Analysts at Panmure Liberum described the outcome as a “material boost” to future free cash flow from 2027.
Adding to investor optimism, Currys unveiled a £50 million share buyback programme, reflecting management’s confidence in the company’s balance sheet and growth trajectory. The move comes after the stock had fallen 12% over the past three months amid concerns about slowing consumer spending in a high-inflation environment.
Chief executive Alex Baldock welcomed the latest results, saying: “It’s been a good start to the year, with encouraging performance across the group.” He added that the company remains on track to deliver a 5% increase in annual profit, in line with market forecasts.
The combination of improved trading, reduced pension liabilities and a buyback scheme reassured investors that Currys is well positioned to weather consumer headwinds. Analysts believe the momentum could continue, with Panmure Liberum noting “numerous catalysts that could drive further upgrades through the year.”
Currys’ performance mirrors a broader trend among UK retailers adapting to shifting consumer behaviours during extreme weather conditions and the rapid adoption of new technologies. For the electricals chain, cooling appliances and AI-enabled devices are proving to be key growth drivers.
With shares now at their strongest level since 2020, the company has regained investor confidence and positioned itself for further growth. However, analysts caution that consumer spending pressures remain a risk, particularly if inflation persists or economic conditions worsen.
