Wickes: Retail Trading Sees Q3 Boost; Design & Installation Stabilising

Wickes Group plc has published a trading update for the 13 weeks ending 28 September 2024, noting: 

• 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). 

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.”

Source : Wickes plc

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