Wickes maintains FY outlook despite LFL sales decline
With selling prices in mild deflation, the growth in retail sales has been driven by volume with an increased number of transactions
Wickes has maintained its full-year profit guidance, despite overall like-for-like sales for the first 16 weeks to 20 April falling by 4.2% against the same period last year.
While it said the trading environment remains uncertain, the group expects its “solid” start to the year within its retail offering to pay off along with its continued focus on costs.
With selling prices in mild deflation, the growth in retail sales has been driven by volume with an increased number of transactions.
TradePro sales continued to perform strongly, rising 12% in the period, as Wicked grew its customer base by a further 57,000 members.
However, DIY sales remained in moderate decline overall. According to the group, while customers are enthusiastic about home improvements, they are “focussing on smaller projects”.
As a result, Wickes has seen strong performance in its decorative categories, with interior paint sails up 13% year-on-year.
Meanwhile, design and installation sales declined by 18.2%, reflecting a particularly strong performance in the comparative period for the prior year, when Wickes still benefited from an elevated order book.
Looking forward Wickes will continue to focus on tight cost management throughout the business, as well as implement its planned productivity initiatives.
The group will also deliver cost savings in design and installation, as a result of the lower sales volumes.
David Wood, CEO of Wickes, said: “In the first few weeks of 2024 we have been encouraged that DIYers and local trade professionals continue to turn to Wickes as a brand they trust for great value and service, and as a result, we have once again grown market share.
“While the external environment remains uncertain, our overall profit expectations for the full year remain unchanged.”
He added: “Looking ahead, we continue to invest for future growth with our programme of store refits, new store openings and investment in both technology and Solar Fast, building an even stronger Wickes for the future.”
