22 October
2024
Wickes Group plc - Trading
Update for 13 weeks ending 28 September 2024
Stronger growth in Retail;
stabilising performance in Design &
Installation
Profit outlook for the year
remains unchanged
In the
third quarter of 2024 Wickes delivered stronger sales and volume
growth in Retail1 with LFL sales up 4.2%. Despite
challenging market conditions, our Design &
Installation2 business is stabilising, with LFL sales
decline slowing to 13.3%. Overall Group revenue increased by
2.1% compared to the prior year (an increase of 0.4% on a LFL sales
basis).
|
|
|
Q1
13 weeks
to 30 March
|
Q2
13 weeks
to 29 June
|
Q3
13 weeks
to 28 September
|
YTD
39 weeks
to 28 September
|
|
Retail1
|
Revenue
|
£282.9m
|
£350.3m
|
£312.1m
|
£945.3m
|
|
Revenue
growth
|
1.9%
|
0.3%
|
4.7%
|
2.2%
|
|
LFL revenue
growth
|
1.7%
|
(0.2%)
|
4.2%
|
1.8%
|
|
Design
& Installation2
|
Revenue
|
£80.8m
|
£85.9m
|
£79.2m
|
£245.9m
|
|
Revenue
growth
|
(17.3%)
|
(16.7%)
|
(7.1%)
|
(14.1%)
|
|
LFL revenue
growth
|
(17.6%)
|
(18.9%)
|
(13.3%)
|
(16.8%)
|
|
Group
|
Revenue
|
£363.7m
|
£436.2m
|
£391.3m
|
£1,191.2m
|
|
Revenue
growth
|
(3.1%)
|
(3.6%)
|
2.1%
|
(1.6%)
|
|
LFL revenue
growth
|
(3.3%)
|
(4.4%)
|
0.4%
|
(2.6%)
|
Retail
sales delivered good growth in Q3, demonstrating the continued
strength of Wickes' great value and service-led proposition.
Market share growth has been particularly strong in Q3, driven by
volume, with selling price deflation of around 2%. Trading in
Q3 also benefitted from customers catching up on outdoor projects
delayed by the wet weather during spring and early summer. We
expect this pent-up demand to subside in Q4.
Within
Retail, TradePro continues to perform strongly, with sales up 16%
year-on-year in the quarter, as local trade professionals continue
to choose Wickes to save them time and money. Active TradePro
members3 have increased by 18% year-on-year to
564,000. DIY sales remain in moderate decline as customers
continue to focus on smaller projects.
Design
& Installation delivered sales4 in the third quarter
reflected the continued challenging environment for larger ticket
purchases. Ordered sales5 in the third quarter
were lower than the same period last year but have been more stable
in recent weeks. Design & Installation now includes a
full quarter of Solar Fast sales, which are reflected in the
differential between total revenue growth and LFL revenue growth in
Q3.
Investment
in our strategic growth levers continues, with our Aberdeen store
opened in August, our third new store so far this year. We
have refitted two further stores and c.79% of the store estate is
now in the new format.
Given
current trading, we remain comfortable with market expectations for
adjusted profit before tax for 2024. Wickes' proven growth
strategy and consistent market share gains position us well for
faster growth as market conditions improve.
We expect
to report Q4 trading in late January 2025.
David Wood, Chief Executive
of Wickes, commented:
"Our excellent value and
service-led offer keeps home improvers coming back to Wickes.
We've seen pleasing further progress in Retail, successfully
growing volumes and increasing market share, driven by a
particularly strong performance in TradePro. We remain on
track for the full year and are well positioned for 2025 and
beyond."
Enquiries
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 -
TradePro, DIY (together reported as Retail) and our project-based
Design & Installation division.
Wickes operates from its network of 229 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.
Footnotes
1) Retail
refers to the revenue stream formerly described as Core.
Retail revenue relates to products sold directly to customers (both
DIY and local trade), in stores or online.
2) Design
& Installation refers to the revenue stream formerly described
as DIFM or Do-it-for-me. Design & Installation revenue
relates to projects such as kitchens and bathrooms, sold by our
showroom Design Consultants. Revenue is recognised when
delivery and installation (where applicable) is complete.
Design & Installation includes Solar Fast.
3) Active
members of the TradePro scheme are defined as those who have
shopped with us in the last 12 months.
4) Delivered
sales refers to the revenue which is recognised when the Group has
satisfied its performance obligation to the customer and the
customer has obtained control of the goods or services being
transferred.
5) Ordered
sales refers to the value of orders at the point when the order has
been agreed.