Wickes Notes Continued Growth In Retail In H2 2024

• Continued growth in Retail; Improving performance in Design & Installation
• FY24 profit expected to be towards upper end of market forecast range 

In the second half of 2024 [six months ending 28th December 2024] Wickes delivered continued sales and volume growth in Retail¹ with revenue up 3.0% year on year.  Despite challenging market conditions, our Design & Installation² business continues to improve, with the decline in revenue slowing considerably.  Overall Group revenue increased by 1.8% year on year in H2. 

Retail sales delivered good growth in H2, demonstrating the continued strength of Wickes' great value and service-led proposition.  We increased market share further, with particularly strong performance in interior paint, decorative accessories and garden projects.  This sales performance was driven by volume growth, with deflation of around 2% in the second half. 

Within Retail, TradePro continues to perform strongly, with sales up 14% year-on-year in the second half, as local trade professionals continue to choose Wickes to save them time and money.  Active TradePro members³ have increased by 19% year-on-year to 581,000.  DIY sales remain in moderate decline as customers continue to focus on smaller projects. 

Design & Installation sales improved across the second half, reflecting a number of actions we have taken to improve our customer offer and experience during 2024.  While the market environment for larger ticket purchases remains challenging and the outlook uncertain, the changes we made to the business enabled ordered sales⁴ to move into year-on-year growth in the fourth quarter. Delivered sales⁵ saw a LFL improvement from -13.3% in Q3 to -3.1% in Q4. 

Investment in our strategic growth levers continues, with our new store in Leamington Spa having opened in October, our fourth new store for the year.  We have refitted two further stores (seven in total for the year) and c.80% of the store estate is now in the new format.  

The balance sheet remains strong, with net cash at the year end of £86.3m, after the acquisition of our 51% stake in Solar Fast for £5.1m, the completion of the £25.0m share buyback programme⁶ and the sale and leaseback of our Braintree store, which raised £6.2m.  Average cash across the year was £142.6m, reflecting our normal cycle of working capital. 

Adjusted profit before tax for FY24 is expected to be towards the upper end of the £39.7-£44.0m consensus forecast range.  Wickes' proven growth strategy and consistent market share gains position us well for faster growth as we continue to invest in our strategic growth levers. 

We expect to report full year results for the period ending 28 December 2024 in the second half of March 2025.

David Wood, Chief Executive of Wickes, commented:

"Wickes' differentiated model continues to deliver. We've grown sales and volumes in Retail, and TradePro had yet another period of double-digit sales growth, as local tradespeople continue to choose us to save them time and money.  

"Meanwhile, measures we took to improve our offer in Design & Installation have enabled us to return to ordered sales growth.  

"We expect to deliver FY24 profit towards the upper end of the forecast range and looking to the year ahead we are well positioned to outperform the market as we continue to invest in our strategic growth levers." 

Source : Wickes

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