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CMO has seen H1 sales fall by 17% to £30.3m, down from £36.9m the prior year, after first quarter sales were hit by poor weather during the period.Over the half-year period, Building sales fell by 13%, while Plumbing was down by 12.4%. Its Tiles business was the most impacted, however, as sales plummeted 36.6% due to the bad weather in Q1.
Despite this, in its latest update for the seven months ended 31 July, an improving sales trend and positive momentum was seen through Q2 and July.
In July, there was a particularly strong performance in its Plumbing business, as like-for-like sales increased 9.6%.
Looking ahead, the building supply retailer said it will continue to focus on improving product margin, maintaining carriage cost recovery, as well as bringing digital marketing spend down to or below 6% in order to save costs.
While the group warned that market conditions “remain challenging”, it said it “continues to be optimistic about maintaining the improving sales trend given developments in the market and the recent cut in interest rates”.
Dean Murray, CEO of CMO Group PLC, said: “We are pleased to see early signs of market recovery and are further encouraged by the interest rate cut last week, which will stimulate the market.
“The full launch of the Landscaping Superstore marks further, great progress in our mission to provide our customers with everything they need to build or maintain a home. We also look forward to seeing how the ‘Super Rewards’ programme enhances customer loyalty as it rewards for spend and behaviours.”
He added: “The positive sales momentum shown throughout Q2 and into July, combined with our focus on profitable sales and becoming a more efficient business, means that we remain confident about the future.”
