Electronics retailer Currys has been hit by supply chain problems that led to trouble sourcing goods over Christmas.

Sales dropped by 5% in the 10 weeks to 8 January compared to the same period a year earlier. The company cut its profit guidance as a result, saying it now expects pre-tax earnings of £155 million for the full-year rather than the previously guided £160 million.

CEO Alex Baldock said: “The Technology market was challenging this Christmas, with uneven customer demand and supply disruption. Against this backdrop, Currys’ colleagues showed their resilience and the stronger business we’ve built.

“We gained market share, improved customer satisfaction, traded profitably, and can look ahead with confidence.”

Baldock argued that Currys, which has over 800 shops across 8 countries, performed well given market data suggests the UK tech market shrank by 10% over Christmas after a bumper 2020.

He highlighted gaming as a bight spot: “This was a gamers’ Christmas, the year that virtual reality broke into the mainstream, and when consoles flew off the shelves. Oculus Quest 2 and PS5 were stars.”

The retailer said some of the issues that hit Christmas trading persist. It is “continuing to face into uncertain demand and supply chain disruption which means there are some areas where availability remains challenged.”

Baldock said: “Nobody is resting here, of course, and much hard work lies ahead.”

A £75 million share buyback, announced in November, begins today.

Shares dropped 4.7p, or 4.2%, to 107.8p.