Currys enjoys rising sales as shoppers turn to air conditioning over hot summer

Currys has enjoyed higher sales over recent months as shoppers embraced AI computing and stocked up on air conditioning for the hot summer.

Shares soared by about a fifth after the company updated investors on its recent performance and launched a new share buyback programme.

The electricals retailer, which has more than 700 shops, said revenues rose by 3% in the UK and Ireland over the 17 weeks to August 30, compared with the same period a year ago.

This was partly driven by products in its new ranges enjoying double-digit growth – which include its beauty and health equipment like LED face masks and pet technology like monitors and automatic feeders.

Strong sales in gaming, AI computing, coffee machines and cooling products were offset by declining TV, tablet and air fryer sales.

Currys said the use of credit among its shoppers continued to climb to make up 23.3% of all purchases.

The retailer offers buy now, pay later credit plans for shoppers and makes money from interest payments if consumers do not pay back in full within an agreed timeframe.

It also said subscribers for its mobile network brand iD mobile jumped by more than a fifth year on year.

Within its Nordics region, revenues edged up by 2%, partly due to new ranges like robotic lawnmowers and vacuums.

Currys has been focused on improving the performance of its second biggest market in Nordic countries including Norway, Sweden and Denmark after it came under pressure in recent years.

Chief executive Alex Baldock said its “Nordics recovery continues to pick up pace”, adding that the company was “confident that profit margins will step forward again this year”.

He said: “It’s been a good start to the year, with encouraging performance across the group.

“In the UK and Ireland we’re pleased with the trajectory in our growth areas of new categories, B2B (business-to-business) and the services that are so valuable to customers and to Currys.

“Credit was notably strong and iD Mobile is on track to beat the 2.5 million subscriber target we set for this year.”

Currys said it was kickstarting a new £50 million share buyback programme as it stood by its earnings outlook for the year.

The company’s shares rose to the highest level since December 2021 on Thursday following the update.