The Works reports sales up 6.1% to £316.6m

The Works has reported that its total sales increased 6.1% to £316.6m in FY23 compared with £298.4m in FY22, against a challenging backdrop, according to its recent trading update for the 52 weeks ended 30 April 2023.

Stores, which represented 88.8% of total sales, delivered a like-for-like sales increase of 7.5%.

However, online sales declined by 15.0%, resulting in overall like-for-like sales growth of 4.2%.

Trading since the previous update in January saw store like-for-like sales increase by 12.1% and online sales decline by 12.5%.

Even though its online sales dropped, its overall like-for-like sales were up 9.3% during this period.

The retail company said that FY22 comparatives weakened in April 2023 due to the aftermath of the March 2022 cyber security incident, which is reflected in the slight increase in the recent rate of sales growth.

The company expects to report an Adjusted EBITDA result for FY23 and FY24 to be in line with its compiled estimate of the market’s forecast, which is approximately £9m and £10.0m respectively.

It also remains “confident in the future prospects of the business”.

Gavin Peck, chief executive officer of The Works, said: “Our performance in FY23 was delivered against a challenging backdrop. The business traded well through difficult external conditions, most notably the inflationary environment and the recovery from the cyber security incident at the start of the year. The store’s performance was strong throughout the period, demonstrating the enduring value of our store network in communities across the UK and Ireland.

“Online sales continued to lag behind, partially reflecting the normalisation trend seen more widely. We delivered good strategic progress in the second half of FY23 and have now laid the foundations to continue on this trajectory in the year ahead. This progress is testament to the passion and commitment of our brilliant colleagues, who continue to go above and beyond to deliver for our customers.”