Trading Update
31/01/2023 07:00
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WICKES GROUP PLC (WIX)
WICKES GROUP PLC: Trading Update
31-Jan-2023 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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31 January 2023
Wickes Group plc – Trading Update for the 13 weeks to 31 December
Strong Q4 trading with Group sales up 11.5%; adjusted PBT expected to be
in line with market consensus1
Wickes Group plc (“Wickes” or “the Group”) today provides a fourth quarter
trading update for the 13 weeks to 31 December 2022.
1 Year Like for Like Sales 3 Year Like for Like Sales
Growth % Growth %
2022 Core DIFM Total Core DIFM Total
Quarter 1
(11.0)% 28.4% (4.0)% 34.8% (7.9)% 20.6%
(13 weeks to 2 Apr)
Quarter 2
(0.2)% 30.9% 5.4% 38.2% (5.1)% 26.2%
(13 weeks to 2 July)
Quarter 3
0.0% 12.2% 2.6% 27.3% (1.7)% 19.2%
(13 weeks to 1 Oct)
Quarter 4
5.2% 34.5% 11.5% 32.4% 11.4% 25.8%
(13 weeks to 31 Dec)
Full year
(2.0)% 26.0% 3.5% 33.0% (1.3)% 22.8%
(52 weeks to 31 Dec)
Note: DIFM represents delivered sales
Core LFL sales growth for the fourth quarter was 5.2%, continuing the
improving trend since the summer. Local Trade sales again performed
strongly, with our digital TradePro customer base ending the year at 746k
(+18% year-on-year), as we continue to grow the awareness and appeal of
the scheme through its compelling value proposition. DIY sales remain
below last year although have stabilised towards the end of the quarter
supported by sales of energy saving products.
Retail price inflation has moderated further, aided by reductions in the
cost of timber. Inflation in Q4 was 9%, and continues to trend lower.
Since 2019, the business has increased Core LFL sales by 33.0% and
consistently increased market share2, demonstrating the strength of the
business model and the success of our growth levers.
DIFM LFL delivered sales in Q4 were 34.5% ahead on a one year basis
against an omicron-affected comparative, as we successfully worked through
the elevated order book. We achieved our target of increasing the number
of installer teams from 2,600 as at March 2022 to 3,000 at the end of the
year.
The order book at the end of December was lower than 2021 but still above
2019 levels. Orders in the fourth quarter were moderately down versus last
year but on an improving trend from the third quarter. This trend has
continued and orders in Q1 to date are in line with the prior year.
During the fourth quarter we completed four store refits taking the total
to 11 for the year, in addition to the downsize and refit of the Maidstone
store. Our new store in Bolton opened in October, and there are plans for
further openings in 2023.
In December we announced our science-based emissions targets, following
approval from the SBTi. In Q4, as part of our work to help customers
reduce emissions, we launched our digital Sustainable House Guide, with
advice on sustainable living and energy reduction for all rooms in the
house with a click to purchase option for the most important products.
Following the fourth quarter performance we expect full year adjusted PBT
to be in line with current market expectations.
In addition to supporting customers through the cost of living crisis by
remaining market leading on price, we are also helping our colleagues, as
previously announced, by bringing forward the annual pay awards (including
the increase in the National Minimum Wage) from April to January, at a
cost of £3.5m.
With the recent decline in wholesale prices, we currently expect our
energy costs in FY2023 to be around £10m higher than FY2022. This includes
a modest premium for switching to fully renewable energy.
1Current market consensus from covering analysts is adjusted PBT of
£72-76m
2 Source: GfK GB PoS data, sourced from GfK DIY Category Reporting
December 2022
David Wood, CEO of Wickes, commented:
“Wickes traded well during the period, with Group sales up 11.5%,
underpinned by our relentless focus on value, availability and service.
“With the increased cost of living and colder winter months we have seen
more customers turning to Wickes for help to reduce their energy usage and
bills. We're providing market-leading value on products, from loft
insulation through to draught excluders, and customers are visiting our
online Sustainable House Guide for great hints and tips on how to reduce
energy and cut back on costs.
“Wickes continues to demonstrate the strength of its uniquely balanced
business model. We remain focused on our growth levers to ensure that we
continue to outperform the market.”
Wickes
Investor Relations
Andy Hughes +44 (0) 7767 365360
1 investorrelations@wickes.co.uk
Headland +44 (0) 0203 805 4822
PR Adviser to Wickes
Lucy Legh, Will Smith
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 - Local Trade, DIY (together "Core") and
Do-it-for-me ("DIFM").
Wickes operates from its network of 230 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.
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ISIN: GB00BL6C2002
Category Code: TST
TIDM: WIX
LEI Code: 213800IEX9ZXJRAOL133
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 219442
EQS News ID: 1547071
End of Announcement EQS News Service
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References
Visible links
1. mailto:investorrelations@wickes.co.uk
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