Wilko owner returns to profit as revenues rise 13.5%
Following the acquisition of the Wilko.com domain and intellectual property in September 2023, the group relaunched the website, contributing an additional £60m in revenue year on year
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Norton Group Holdings, owner of retail brands including Wilko, The Range and Homebase, has returned to profit, reporting pre-tax profits of £10.5m for the 53-week period ended 2 February 2025.
Group revenue also rose 13.5% to £1.47bn, up from £1.3bn the previous year. The £176m increase was driven by growth across both its retail stores and online operations, with £104m attributed to the store portfolio.
The group opened 19 new stores during the period, compared with12 the previous year, while existing stores posted a like-for-like sales increase of 3.96%. The performance came despite poor summer weather, which affected sales of outdoor and garden ranges.
Online operations also saw significant growth. Following the acquisition of the Wilko.com domain and intellectual property in September 2023, the group relaunched the website, contributing an additional £60m in revenue YOY.
The Range’s website added a further £10m, supported by an expanding marketplace platform.
While the Wilko online model operates on lower margins due to its dropship structure, overall retail margins improved, supported by favourable exchange rates and lower freight costs.
Operating profit increased £30m year on year, including an £18m gain on derivatives, although expenses increased by £51m, reflecting higher staff, rent and marketing costs.
Since the period end, Norton Group has completed the conversion of 50 former Homebase stores, adding further scale to its retail footprint. The expansion has boosted trading in the current financial year, with sales forecast to exceed £1.7bn.
The company stated that it continues to gain market share amid wider sector consolidation and has opened 40 additional stores since February.
Additionally, looking ahead, the group has prepared forecasts for the period to January 2027 which includes a cautious assumption for sales generated by the new stores.
The projections demonstrate that the group is forecast to generate significant cash flows and continue to meet its covenant requirements.
In a statement, Norton Group, said: “Despite continued pressure on household income, group trading has remained strong. The addition of new stores and the relaunch of Wilko.com have strengthened our position in the market, and we remain focused on offering customers value for money while expanding our UK presence.”
