Positive results for The Works as it gears up for Christmas
Books, toys and stationery retailer The Works continues its valiant post-pandemic comeback as revenue climbs for the high street arts and crafts store.
The retailer saw its revenue increase by 46.5% to £264.6m in the past year (FY 2021: £180.7m) which it said was down to careful management of supply chain, and increased consumer demand post COVID-19.
The sales performance and the improvements made throughout the year to operations and proposition, helped to offset the impact of external headwinds, resulting in an increased profit before tax of £10.2m, compared with a loss of £2.8m in FY 2021.
Trading since The Works update in August has remained resilient however the firm says its outlook for FY23 is unchanged, reflecting the board’s desire to remain cautious in light of the uncertain economic conditions.
In August the firm said the general market outlook has deteriorated, alongside low consumer confidence and rising inflation.
This has created a degree of uncertainty for The Works as to how consumers will behave during Christmas – its most important trading period. Therefore it would like to maintain a “cautious approach” in these market conditions and has materially lowered in expectations in relation to FY23’s result.
Gavin Peck, Chief Executive Officer of The Works said: “Since our last update in August, our online performance has gradually improved and we continue to be encouraged by store sales, which comprise the significant majority of our revenue and have delivered positive LFL sales growth since June.
“This has all been supported by the ongoing evolution of our proposition, including a strong performance of our improved ‘Back to School’ range.
“We are well-placed operationally for Christmas and are gearing up to deliver for our customers, maintaining our commitment to provide them with the products they love at fantastic value.
“The Works is a resilient business with a proven track record of delivering robust results during times of economic hardship, however, given current conditions, we maintain our cautious view of the year ahead”.
