REG - Wickes Group PLC - Q3 Trading Update

WickesAnnouncement

22/10/2024 07:00

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RNS Number : 0299J  Wickes Group PLC  22 October 2024

 

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 Retail(1) with LFL sales up 4.2%.  Despite challenging market conditions,
our Design & Installation(2) 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                     Q2                    Q3                         YTD

                                                   13 weeks to 30 March   13 weeks to 29 June   13 weeks to 28 September   39 weeks to 28 September
 Retail(1)                     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 & Installation(2)      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 members(3) 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 sales(4) in the third quarter reflected
the continued challenging environment for larger ticket purchases.  Ordered
sales(5) 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

 Investors and Analysts                                             Media

 Holly Grainger                                                     Lucy Legh, Will Smith, Eleanor Evans

 Director of Investor Relations                                     PR Advisers to Wickes

 +44 (0)7341 680426                                                 +44 (0)203 805 4822

 holly.grainger@wickes.co.uk (mailto:holly.grainger@wickes.co.uk)   wickes@headlandconsultancy.com (mailto:wickes@headlandconsultancy.com)

 

 

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.

 

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