- The home improvement retailer was previously owned by Travis Perkins.
- Wickes’ like-for-like sales fell 4.2% in the 16 weeks ended April 20.
Wickes reiterated its full-year guidance even though its turnover declined during the first months of 2024 amid weaker demand for big-ticket items.
The home improvement retailer, which was previously owned by Travis Perkins, said its comparable sales fell 4.2 percent in the 16 weeks ended April 20.
Revenue at its design and installation business fell 18.2 percent after a strong comparative performance the previous year, when it benefited from a stronger order book.
Home improvement retailer Wickes reiterated its full-year guidance despite its turnover declining during the first months of 2024.
Wickes noted that the big-ticket market “remains challenging” having been hit over the past year by interest rate rises and cost of living pressures.
However, the group achieved its fourth consecutive quarter of turnover growth in its retail division, which expanded 0.6 percent as higher transaction volumes offset “slight deflation” in selling prices.
Its TradePro discount scheme for merchants added another 57,000 members and enjoyed a 12 per cent increase in revenue.
In addition to this, Wickes saw a 13 per cent increase in interior paint sales and a 25 per cent increase in orders for its lifestyle kitchens.
Following the result, the Watford-based company maintained its outlook for the full year. In March, Wickes said he was “comfortable” with the consensus forecast of £43.6m in adjusted pre-tax profits.
David Wood, its chief executive, commented: “While the external environment remains uncertain, our overall full-year profit expectations remain unchanged.”
Like many DIY retailers, Wickes boasted brisk business throughout much of the Covid-19 pandemic, as restrictions forced Britons to spend more time indoors.
Demand was also boosted by cheaper mortgages, a temporary cut in stamp duty, the build-up of excess savings and a growing desire among Britons to reside in larger properties.
Trade has stagnated since lockdown restrictions ended and the Bank of England began raising interest rates to curb inflation, thereby increasing mortgage costs.
Last year, Wickes’ like-for-like turnover fell 0.3 per cent, while its profits after accounting for software-as-a-service investments plummeted 31 per cent to £52m.
However, its profits beat expectations and the company maintained its full dividend payout of 7.9 pence per share.
Wickes Group Shares They were down 1.8 per cent at 143p at lunchtime on Wednesday.