Investing.com -- Shares of Currys (LON:CURY) surged over 11% on Wednesday after the retailer raised its profit guidance following strong sales during the Christmas trading period.
In the ten weeks leading up to January 4, the company's like-for-like revenues increased by 2% in the UK and Ireland.
This growth was driven by strong demand in mobile phones, gaming devices, and premium computing products, along with stable gross margins.
Several omnichannel capabilities stood out, including the retailer's 13% increase in order-and-collect services and significant gains in online revenue.
In the Nordic markets, Currys also reported positive results, with like-for-like revenue climbing by 1%.
The region saw growth in categories such as domestic appliances and computing, though overall market conditions remained soft.
"We're pleased by our strong Peak trading. We grew in both markets, continuing the trend of Currys' strengthening performance, and we believe this year's profits will be ahead of market expectations," said Alex Baldock, chief executive at Currys.
The company's strategy to balance sales with gross margin performance, rather than pursuing less profitable sales, contributed to this result.
Cost savings in the Nordics further offset inflationary pressures, showcasing an ongoing focus on operational efficiency.
The Group's adjusted profit before tax is now expected to reach between £145 million and £155 million, reflecting a 23-31% improvement over prior expectations.
"We think the midpoint of its new guidance range is around 5% ahead of a more recent consensus," said analysts at RBC (TSX:RY) Capital Markets in a note.
A total of 2.1 million subscribers are now subscribed to Currys' iD Mobile unit, an increase of 500,000 subscribers year-over-year.
Currys credited its success to well-executed holiday promotions, strong availability of premium products, and investments in both its online and in-store platforms.
The company intends to pay 1.3p per share as part of its full-year results, reaffirming its commitment to dividend payments.
Both the UK and Nordics are expected to continue to grow adjusted EBIT, as well as improving free cash flow.