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On Tuesday, Wickes (LSE:WIX) reported a decrease in interim profit as revenues declined, although the company maintained its profit outlook for the year, citing improving trends.
For the 26 weeks ending June 29, adjusted pre-tax profit fell to £23.4 million from £31.1 million during the same period the previous year. Revenues also decreased by 3.4% to £799.9 million. This decline in revenue was attributed to a slowdown in the Design & Installation segment, despite ongoing volume-driven growth in the retail segment.
On a statutory basis, pre-tax profit showed a modest increase, rising to £22.9 million from £21.1 million.
Wickes highlighted "significant" cost pressures this year, including an increase in the National Minimum Wage and broader inflationary impacts across the business. To address these challenges, the company implemented various productivity measures, achieving savings in areas such as distribution and shrinkage.
The company reported a more favorable trading trend in the third quarter. Retail sales, measured on a like-for-like basis, demonstrated improved growth, and the Design & Installation segment showed signs of stabilization.
Chief Executive David Wood remarked on the company’s progress, noting that Wickes had achieved further volume growth and captured record market share gains in the retail sector, with TradePro remaining a key competitive advantage. Although the Design & Installation market remained challenging, the introduction of the Wickes Lifestyle Kitchen range has seen strong growth.
Looking ahead, Wickes remains on track for the year and has been encouraged by early trading in the second half. The company is confident that its strong customer offering, effective growth strategies, and focus on cost management will position it well in the home improvement sector, which continues to present significant opportunities.
