Wickes has increased its full-year earnings expectations after a “strong” fourth-quarter trading period, with profit expected to be no less than £83m.
It revealed the firm has “benefitted” from its “balanced business model”, with sales in line with expectations.
Delivered sales in Do It For Me (DIFM) are “strengthening” as it works through an “elevated” order pipeline.
Wickes said that “as expected”, core sales are lower year-on-year against “tough” comparatives, remaining ahead on a two-year basis driven by a further “strong performance” from local trade underpinned by its digital TradePro loyalty scheme.
Results showed the firm’s “agile business model and strong supplier relationships” have resulted in a “better than expected” margin performance, whilst mitigating the pressures resulting from rising inflation and freight costs.
Whilst the recent changes to UK Government Covid-related guidance are unlikely to have a material impact on performance over the balance of the year, the trading environment continues to remain uncertain and we will monitor the situation closely.
David Wood, CEO of Wickes, said: “This has been a period of further progress for Wickes, where our focus on value, stock availability and exceptional service have underpinned our customer offer.
“Our forward planning and early strategic decisions have resulted in an improved profit performance, and we continue to navigate inflationary pressures and raw material constraints well.”
He added: “Clearly, this remains a time of uncertainty, however our differentiated business model leaves us well-placed to continue to outperform within a large and growing home improvement market.”