Wickes first half revenue declines as home improvement market “remains tough”
Wickes has reported a decline in first half revenue after its customers’ appetite for big home improvement projects was impacted by the higher cost of living.
In the six months to 29 June, revenue fell by 3.4% to f £799.9 million, although retail sales to DIY customers and local trade professionals edged up 1% to £633.2 million.
However, design and installation revenue, which includes sales of kitchens and bathrooms, declined by 17% to £166.7 million as customers were more cautious about spending on large projects for their homes.
Wickes said its TradePro business continued to perform well in the period with sales rising by 14% due to an increase in the number of active members.
David Wood, chief executive of Wickes, said: “This first half performance is testament to the hard work of all our colleagues and demonstrates the strength of our balanced business model. We achieved further volume growth and record market share gains in Retail, with TradePro remaining a key differentiator.
“The market for design and installation remained tough during the half and Wickes was not immune; nonetheless, we have seen a positive response to our value-led Wickes Lifestyle Kitchen range, which is growing strongly.”
Meanwhile, adjusted pre-tax profit fell to £23.4 million from £31.1 million a year earlier after the retailer dealt with increased wage costs and more general inflationary pressures across the business.
On a statutory basis, pre-tax profit climbed by 8.5% to £22.9 million.
Giving an update on more current trading, Wickes said retail like-for-like sales growth has strengthened in its third quarter while sales in the design and installation category have stabilised.
Wood said: “We are on track for the remainder of the year and have been encouraged by trading at the start of the second half. Looking further ahead, our outstanding customer offer, proven growth levers and focus on cost control leave us well-placed within a home improvement market which continues to offer significant opportunities.”
Earlier this month, Wickes announced that it had opened its first new store in Scotland in over ten years.
