Home improvement retailer Wickes has reported a decline in half year sales although its retail segment saw an uplift.
According to its half year results for the 26 weeks to 29 June 2024, total sales fell 3.4% to £799.9m from £827.7m in 2023.
Retail sales rose 1% to £633.2m from £626.8m, while Design & Installation revenues fell 17% to £166.7m from £200.9m.
Statutory pre-tax profit resulted at £22.9m, improving from £21.m, while adjusted pre-tax profit stood at £23.4m, down from £31.1m year-on-year.
“The UK home improvement market has seen ongoing consolidation, following the demise of Wilko, CTD Tiles and Carpetright,” the retailer said. “Wickes has continued to gain market share over this period of consolidation, with notable gains in paint as well as tiling & flooring.
“Whilst market demand for large projects has been challenging and has impacted market demand for related categories such as tiling & flooring, Wickes’ market share has continued to increase.”
During the period, Wickes opened two new stores in Long Eaton and Durham, creating around 60 new jobs, adding that it has an “exciting pipeline” of new stores planned for the coming years, as it targets an overall estate of around 250 stores over the medium term.
Two stores were also closed in Ashton Gate and Inverness due to not meeting its returns criteria. Wickes ended the period with 229 stores. “Our property plans for 2024 are on track. We are planning a total of seven refits for the full year and 4 new stores. Our new store in Aberdeen opened in August and Leamington Spa is due to open in Q4.”
As for current trading in Q3, Wickes said it has seen an improved trend in Retail, with LFL sales growth strengthening and Design & Installation stabilising. “Whilst the market outlook remains uncertain, current trading along with the planned action taken to mitigate the impact of inflation underpins management’s outlook for adjusted PBT for FY 20249,” the retailer said.
David Wood, Chief Executive of Wickes, commented: “This first half performance is testament to the hard work of all our colleagues and demonstrates the strength of our balanced business model. We achieved further volume growth and record market share gains in Retail, with TradePro remaining a key differentiator. The market for Design and Installation remained tough during the half and Wickes was not immune; nonetheless, we have seen a positive response to our value-led Wickes Lifestyle Kitchen range, which is growing strongly.
“We are on track for the remainder of the year and have been encouraged by trading at the start of the second half. Looking further ahead, our outstanding customer offer, proven growth levers and focus on cost control leave us well-placed within a home improvement market which continues to offer significant opportunities.”
