REG-WICKES GROUP PLC WICKES GROUP PLC: Trading Update

WickesAnnouncement

21/10/2022 07:15

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   WICKES GROUP PLC (WIX)
   WICKES GROUP PLC: Trading Update

   21-Oct-2022 / 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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   21 October 2022          

                                        

        Wickes Group plc – Trading Update for the 13 weeks to 1 October

         Stable trading in the third quarter; profit guidance unchanged

                                        

   Wickes Group plc ("Wickes"), the market-leading home improvement retailer,
   announces third quarter LFL sales growth of 2.6%, compared with the 0.8%
   reported for the first half.

    

                        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)

   Note: DIFM represents delivered sales.

    

   Core sales growth for the third quarter stabilised at the levels noted in
   our July trading statement. LFL sales were flat on a one year basis, and
   remain 27.3% ahead on a three-year basis. Sales have strengthened since
   the beginning of September, following the impact of extreme heat seen in
   July and August.

   Local Trade sales performed strongly, with our TradePro customer base
   continuing to increase by 10k per month to c720k, as we continue to grow
   the awareness and appeal of the scheme through its compelling value
   proposition. DIY sales remain below last year although with no signs of
   further softening since our July trading update. 

   Aided by reductions in the cost of timber, there has been some moderation
   in the rate of retail price inflation since the first half.

   DIFM LFL delivered sales in the Q3 were 12.2% ahead on a one year basis as
   we successfully work through the elevated order book. Orders in the third
   quarter are down versus last year; in line with our July update, customers
   are taking longer to commit to big ticket projects.

   During the third quarter we completed 3 refits and rolled out our 30
   minute click & collect service nationally. On 7 October we opened a new
   store in Bolton, with further new store openings in the pipeline for 2023.

   Following this stable third quarter performance we continue to expect full
   year adjusted PBT to be in the range of £72-82m.

   Looking further ahead, uncertainties remain regarding consumer confidence
   and operating cost inflation. In particular, our costs will be impacted by
   rising energy prices once our energy contract ends in March 2023. If
   energy costs were to remain at the current price cap for businesses, then
   our FY2023 energy costs would be c£7.5m higher than FY2022.

    

    

   David Wood, CEO of Wickes, commented:

   “This has  been a  period of  further  progress across  all parts  of  the
   business, with customers and tradespeople continuing to come to Wickes  on
   the strength of our value, availability and service.

    

   “While we are watchful of external  headwinds, we are continuing to  focus
   on our growth levers and on maintaining rigorous control of our costs. Our
   uniquely balanced  business model  leaves us  well placed  to continue  to
   outperform the market."

    

   Wickes                             Headland

   Investor Relations                 PR Advisor to Wickes

   Andy Hughes +44 (0) 7767 365360    Lucy Legh, Will Smith +44 (0) 0203 805
                                      4822
    1 investorrelations@wickes.co.uk 
                                       2 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:  QRT
   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.:   195691
   EQS News ID:    1468281


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:investorrelations@wickes.co.uk
   2. mailto:wickes@headlandconsultancy.com


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