UK's The Works H1 sales dip on online sales drop

Works co uk

22/01/2026 07:11

Overview

UK retailer's H1 FY26 sales fell 0.3% yr/yr due to online sales challenges

Store sales grew 4% LFL, outperforming the wider non-food retail market

Adjusted EBITDA loss narrowed to £1.0m from £2.8m loss in H1 FY25

Outlook

The Works expects FY26 profit in line with market expectations of £11.0m pre-IFRS 16 Adjusted EBITDA

Company anticipates to deliver further profit growth in the years ahead

The Works sees continued product margin growth and cost savings offsetting cost headwinds in FY26 and into FY27

Result Drivers

STORE SALES GROWTH - The Works achieved a 4% increase in like-for-like store sales, outperforming the wider non-food retail market

ONLINE SALES DECLINE - Online sales fell by 36% due to operational challenges with a new third-party fulfilment partner

MARGIN AND COST SAVINGS - Sustained product margin growth and cost-saving actions helped offset cost headwinds

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
GBP 123.80 mln
H1 Adjusted EBITDA
-GBP 1 mln
H1 Adjusted Pretax Profit
-GBP 5.10 mln
H1 Pretax Profit
-GBP 5.60 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

Wall Street's median 12-month price target for Works co uk PLC is GBP73.00, about 80.2% above its January 21 closing price of GBP40.50

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nRSV8652Pa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)