Currys Shares Rally 6% on £50 Million Buyback and Robust Sales Growth Amid UK PMI Surge

Currys PLC stock had climbed 6% to PS52.80 on October 24, 2025, a high-conviction rebound effort as the electronics retailer announced a PS50 million share buyback plan and positive sales growth in its UK, Ireland and European businesses.

This news has followed flash PMI data that shows accelerated business processes within the UK- the manufacturing industry has not grown at all in a year- that consumers feel more comfortable with their disposable income, and Currys has positioned itself to take advantage of festive season tail winds. This shift by the FTSE 250 retailer highlights the belief in overcoming inflationary pressures and e-commerce changes, unlike the volatility in the sector in general.

Buyback Program is an Indication of Positive Boardroom

The 4-per-cent market cap of Currys, represented by the PS50 million repurchase, which will be financed by available cash reserves, will begin as soon as possible and shall be implemented through open-market purchases within six months.

CEO Alex Baldock said it was a clear indication of our underestimation and robust free cash production, to increase earnings per share and back the multiple of the stock. This comes after a PS30 million buyback in 2024 that provided a 12 per cent premium to EPS, and in line with other similar players such as JD Sports, giving back capital to shareholders in the face of low M&A.

The fall of Currys, which was 15 per cent year-to-date before the run, is currently standing at a forward P/E of 8.5, rated heavily discounted against the FTSE 250 average retail price of 12, and value-seekers would find attractive. The program is the culmination of a quarter in which like-for-like sales increased 3% in Q1 due to robust smartphone and laptop demand in the face of wet weather reducing foot traffic.

Building a solid Sales Momentum Regionally

Initial trades showed that total sales have been improving by 5 per cent year-on-year in the first half, with UK/Ireland revenues gaining 4 per cent on strong PC refresh cycles and higher quality television upgrades.

Continental Europe, with a share of 40% of the group’s sales, recorded a high growth of 7 per cent, and this was attributed to Nokia’s partnerships and expansion into five new markets. Warranties and installation services revenue increased by 12% to PS450 million, which is high-margin-stable in the face of hardware commoditization.

The management also emphasised the integration of the omnichannel – 60 per cent of the orders taken online were collected in-store, which resulted in a 2 per cent increase in the market share in consumer electronics.

The levels of inventory were fixed at PS1.2 billion, which is lower than during the pandemic times, allowing it to respond flexibly to pricing without large-scale discounts. Gross margins were maintained at 18.5, due to efficiencies in the supply chains that absorbed a 2-per-cent increase in freight expenses due to Red Sea disruptions.

This is better than the 2-3% growth estimates in consensus, and RBC (target PS60) and Shore Capital (outperform) upgraded it. Currys restated full-year expectations: underlying pre-tax profit PS180- 200 million, capex PS100 million, store revits and digital improvements.

UK PMI Data Fuels Retail Rebound

The rally is in conjunction with the S&P Global flash October PMI, where the composite index is currently accelerating at 52.5, the first time it has hit this level since July, driven by 54.1 services, and a 50.3 surprise reading by manufacturing in the index.

This increase, which can be linked to the fact that the UK economy is experiencing an improvement in the input costs and also the fact that the export is improving, is a positive indication of a softened landing of the UK economy, with consumer confidence slightly increasing to -20, with the expectation of Black Friday.

In the case of Currys (300 outlets in the UK, PS4 billion of sales in the domestic market), the data suggests the continuation of discretionary spending, especially in technology. The rise in consumer spending is projected by Barclays at 1.5% in October, led by electronics and could result in PS150 million to the festive revenues of Currys. Even more favourable is stable 3.8% inflation that is keeping rates easily affordable; the BoE rate-cut expectations rose to 15 basis points in November.

Larger FTSE 250 counterparts responded well: JD Wetherspoon rose 2.5 per cent, B&M 1.5 per cent, and the index rose 0.4 per cent to 20,150. Currys had a better performance, tripled the average volume in terms of its volumes being 8 million shares traded.

Strategic Positioning and Future Challenges

This transformation of Currys under Baldock has focused on customer-first innovation, such as AI-powered personalisation through its Care+ app, which has increased retention by 8%.

The Samsung and Apple partnerships are guarantees of exclusive launch, and sustainability commitments, such as recycling 90 per cent of e-waste, can respond to the ESG requirements and attract resources such as Legal and General (5 per cent stake).

The threats are still there: stiff competition with Amazon and competitive prices may squeeze the margins to 17 per cent in case sterling appreciates further (at present PS1.29/USD).

A PS20 million IT security uplift was triggered by cyber threats, which followed the PS1.9 billion ripple after the JLR incident. Net debt is PS450 million, easily covered by 1.5x EBITDA; however, the rise of holiday stocks may pose a liquidity challenge.

International bolt-ons are also a target of the company, and there is talk of a PS200 million acquisition in Eastern Europe in order to diversify other than mature markets.

Investor Perspectives and Market Conclusions

Projected 10% of FY26 EPS yielding 4.2% with progressive dividend policy- up 5% to 4.5p interim. The buyback and PS50 million of the pension contribution strengthen the balance sheet in case of US entry through the Dixons Carphone remnants.

To UK investors, Currys represents retail strength: a cyclical play with defensive service overlay, and trading at 0.6x sales. It also has some optimism of PMI, which increases PS65 in case Christmas comes through 20% probability.

The news is the triggering factor in consumer play bargains across the industry, with Next and Marks and Spencer rising 1%. With GDP projection standing at 1.2 per cent in 2025, the growth momentum in FTSE would have been supported by Currys, which has registered 16 per cent annual returns.

Overall, the PS50 million purchaseback and sales energy of Currys heats up a 6% boost, similar to the PMI-led vigour in the UK. This electronics anchor is sailing into head winds with grace as shoppers prepare to give gifts to each other, and this electronics anchor can deliver in a high street which is picking itself up.