Currys defies the High Street gloom: Hot summer boosts air conditioning sales

Currys shares soared after strong sales of air conditioning units and AI computing helped it to defy the gloom clouding the High Street.

The electricals retailer, which has 300 stores in the country, said UK and Ireland sales in the 17 weeks to August 30 were up 3 per cent on the same period last year.

The upbeat figures contrasted warnings from the likes of Greggs and JD Sports over the pressures facing consumers.

Currys chief executive Alex Baldock said: ‘It’s been a good start to the year, with encouraging performance.’ Shares rose 15.7 per cent, or 17.1p, to 126.1p as it launched a £50million buyback.

Air conditioning units and electrical fans were among popular products as Britain enjoyed its warmest summer since records began in 1884.

New ranges, such as ‘beauty tech’ with LED face masks and pet technology including monitors and automatic feeders, also did well.

Bucking the trend: Currys, led by chief exec Alex Baldock (pictured), said UK and Ireland sales in the 17 weeks to August 30 were up 3% on the same period last year

There were strong returns on gaming, AI computing and coffee machine products, too, though TV, tablet and air-fryer sales dropped. Sales in its Nordic region, which has historically been a pain point, were up 2 per cent. 

Annual profits are on track to grow by 5 per cent to £170million. 

Julie Palmer, partner at Begbies Traynor, said: ‘Revenues have not increased dramatically, but Currys has posted a solid rise in sales that would be the envy of many High Street staples in the current climate.’

Baldock delivered the update days after he warned the sector’s role as the ‘engine room of the economy’ was threatened by tax hikes.

He added his name to a chorus of bosses calling on Labour to rethink its proposals to reform business rates.

Under the changes, thousands of larger shops will pay more in a move intended to snare the warehouses operated by online giants.

In a letter to Chancellor Rachel Reeves last week, Baldock called for shops to be excluded from higher rates.

He said: ‘Big retailers anchoring our high streets are the ones generating the visits that in turn drive footfall to smaller stores. All will suffer.’

Richard Hunter, head of markets at Interactive Investor, said Currys has performed well ‘despite the prevailing economic headwinds’.

He added: ‘The announcement of a £50million share buyback programme is proof, if it were needed, of a business on a sound financial footing.’