First half outcomes from electrical items retailer Currys suggests its key buying and selling interval is being affected by the affect of Omicron on client sentiment.
Whereas the outcomes themselves are fairly robust, it’s the feedback on present buying and selling which have helped quick circuit the share worth.
Currys particularly references the brand new variant, and it might have additionally seen demand for Christmas items introduced ahead as buyers seemed to get forward of potential shortages. Whereas it has completed a good job of mitigating them, Currys will not be immune from provide chain points and further prices itself.
“The massive hazard is that having loved a bumper interval after the pandemic hit as individuals splashed out on numerous client electronics, the identical stage of demand simply isn’t there anymore,” mentioned AJ Bell’s Russ Mould.
“Whereas Currys is sticking with its full yr steerage for now, because of its robust first half, there may be an apparent danger the second half is sufficiently dangerous to require that steerage to be trimmed or, within the worst case state of affairs, slashed.
“Shareholders can take some consolation from the corporate’s robust stability sheet place and faltering competitors which ought to see Currys maintain on to market share beneficial properties. Underpinning that is Currys’ improved customer support, one thing which might show essential to its fortunes in the long run.”
