WICKES GROUP PLC: Trading Update

21 October 2022          

Wickes Group plc Trading Update for the 13 weeks to 1 October

Stable trading in the third quarter; profit guidance unchanged

Wickes Group plc ("Wickes"), the market-leading home improvement retailer, announces third quarter LFL sales growth of 2.6%, compared with the 0.8% reported for the first half.

Note: DIFM represents delivered sales.

Core sales growth for the third quarter stabilised at the levels noted in our July trading statement. LFL sales were flat on a one year basis, and remain 27.3% ahead on a three-year basis. Sales have strengthened since the beginning of September, following the impact of extreme heat seen in July and August.

Local Trade sales performed strongly, with our TradePro customer base continuing to increase by 10k per month to c720k, as we continue to grow the awareness and appeal of the scheme through its compelling value proposition. DIY sales remain below last year although with no signs of further softening since our July trading update. 

Aided by reductions in the cost of timber, there has been some moderation in the rate of retail price Inflation since the first half.

DIFM LFL delivered sales in the Q3 were 12.2% ahead on a one year basis as we successfully work through the elevated order book. Orders in the third quarter are down versus last year; in line with our July update, customers are taking longer to commit to big ticket projects.

During the third quarter we completed 3 refits and rolled out our 30 minute click & collect service nationally. On 7 October we opened a new store in Bolton, with further new store openings in the pipeline for 2023.

Following this stable third quarter performance we continue to expect full year adjusted PBT to be in the range of £72-82m.

Looking further ahead, uncertainties remain regarding consumer confidence and operating cost inflation. In particular, our costs will be impacted by rising energy prices once our energy contract ends in March 2023. If energy costs were to remain at the current price cap for businesses, then our FY2023 energy costs would be c£7.5m higher than FY2022.

David Wood, CEO of Wickes, commented:

This has been a period of further progress across all parts of the business, with customers and tradespeople continuing to come to Wickes on the strength of our value, availability and service.

While we are watchful of external headwinds, we are continuing to focus on our growth levers and on maintaining rigorous control of our costs. Our uniquely balanced business model leaves us well placed to continue to outperform the market."

About Wickes

Wickes is a digitally-led, service-enabled home improvement retailer, delivering choice, convenience, value and best-in-class service to customers across the United Kingdom making it well placed to outperform its growing markets. In response to gradual structural shifts in its markets over recent years, Wickes has a balanced business focusing on three key customer journeys - Local Trade, DIY (together "Core") and Do-it-for-me ("DIFM").

Wickes operates from its network of 230 right-sized stores, which support nationwide fulfilment from convenient locations throughout the United Kingdom, and through its digital channels including its website, TradePro mobile app for trade members, and Wickes DIY app. These digital channels allow customers to research and order an extended range of Wickes products and services, arrange virtual and in-person design consultations, and organise convenient home delivery or click-and-collect.