Wickes announced second quarter LFL sales growth of 5.4% for the 13 weeks to the 2 July, leading to first half growth of 0.8%. They report local trade businesses continues to perform well benefitting from its market-leading value proposition; however, we have seen signs of softening in DIY and DIFM markets in recent weeks.Wickes Group plc – Trading Update for the 26 weeks to 2 July
- Core LFL sales for the second quarter were down -0.2%, reflecting an improving trend on the first quarter as one year comparatives started to ease.
- First half Core LFL sales were down -5.5% and but remained 36.3% ahead on a three-year basis.
- Local Trade sales performed well, with the TradePro customer base increasing by 60,000 to 690,000 during the first half (FY 2021: +80,000). Although trade activity is ahead of pre Covid levels, "there have beensigns of the market softening in recent weeks".
- DIFM LFL delivered sales in the first half were 29.7% ahead on a one year basis despite ongoing Covid and supply chain challenges.
- There has been, "some slowing of new orders in recent weeks, as customers are taking longer to commit to big ticket projects, however conversion remains good, cancellations remain low and we continue to have a strong order book".
- "Whilst comparatives for Core sales ease in the second half, trading in recent weeks in DIY and a softer outlook for the DIFM market suggest customers are reacting to the uncertain macroeconomic backdrop as we enter the second half of our financial year. Given this backdrop we currently expect full year adjusted PBT to be in the range of £72-82m".
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