Wickes Group plc has released a Trading Update for six months ending 29 June 2024.
- Overall Group LFL sales decreased by 3.9% compared to the prior year, with retail sales up by 0.6% but Design & Installation LFL sales declined by 18.3%.
Retail Sales (i.e. not the 'big ticket' installed sales such as Kitchen, Bathroom, etc)
- Wickes report that, "Retail sales remain resilient and we have continued to increase market share to record levels, demonstrating the continued strength of Wickes’ great value and service-led proposition".
- Growth in the first half was driven by volume, with selling price deflation of around 3%.
- The phasing impact of the Easter peak trading period this year reduced Retail LFL sales in Q2 by 1.4%.
- Within Retail, TradePro sales continue to perform strongly, up 14% in the half, reflecting a healthy pipeline of work for local trade professionals and continued sign-ups to the TradePro scheme.
- Active TradePro members have increased by 18% year-on-year to 541,000. DIY sales remain in moderate decline as customers continue to focus on smaller projects.
Design & Installation (i.e. Kitchens, Bathrooms. Flooring categories)
- Design & Installation delivered sales in the half declined by 18.3% versus 2023, reflecting the continued soft consumer appetite for larger ticket purchases and a strong comparative in H1 2023.
- Ordered sales in the first half have shown a single digit year-on-year decline.
- Sales of lower-priced Wickes Lifestyle Kitchens were up 18.8% year-on-year in H1.
- The Solar Fast acquisition completed on 21 May. Wickes has rolled out Solar Fast point-of-sale assets in 50 of our stores and launched the digital journey on the Wickes website. Wickes' 51% stake will be fully consolidated from the date of completion and included in Design & Installation sales.
Stores
- Two new stores opened in the half, in Long Eaton and Durham.
- Three stores were refitted stores and the company continues to see return on invested capital of over 25% from the refit programme, which has now covered c.78% of the store estate.
Financials
- "The balance sheet remains strong" with net cash at the half year of £151.5 million.
- Whilst the trading environment remains uncertain, given the resilient first half in Retail and a continued focus on costs, "the overall outlook for adjusted profit before tax for 2024 remains unchanged".
- Wickes expect to report half year results in early September 2024.
David Wood, Chief Executive of Wickes, commented:“Our excellent value and service-led offer gives DIYers and tradespeople reason to keep coming back to Wickes. Against a challenging trading backdrop, we have grown volume and taken further market share in Retail, with our TradePro scheme continuing to show strong momentum as local trade professionals turn to Wickes to save them time and money. We’re seeing good demand for our lower-priced Wickes Lifestyle Kitchens, reflecting customers’ desire for quality and value. We continue to invest in our growthlevers and are particularly excited about the recent acquisition of Solar Fast”.
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