Key facts
- Wickes reported a 3.4% decline in overall group sales for the 26 weeks to June 29.
- Revenue from installations and home design fell 17% due to lower consumer appetite for big-ticket purchases.
- Sales of Wickes' budget-friendly Lifestyle Kitchen range increased by 18.8% year-on-year.
- Like-for-like retail sales grew 0.6%, driven by volume despite price deflation.
- Statutory profit before tax was £22.9m, up from £21.1m in the prior year.
- Operational costs remained flat year-on-year.
Wickes is experiencing a shift in consumer spending, with shoppers increasingly opting for more budget-friendly home improvement options. The company reported a 3.4% decrease in overall group sales for the 26 weeks ending June 29, with revenue from larger purchases like installations and home design falling by 17% due to a "continued soft consumer appetite for larger ticket purchases."
However, sales of Wickes' lower-priced Lifestyle Kitchen range saw an 18.8% year-on-year increase. Like-for-like retail sales grew by 0.6%, driven by volume despite a price deflation of around 3%. CEO David Wood noted strong demand for value-oriented products and momentum in the TradePro scheme for trade professionals.
Statutory profit before tax rose to £22.9 million from £21.1 million in the same period last year, while operational costs remained flat. Wickes opened two new stores and refurbished three others during the first half. Analysts at Panmure Liberum described the results as "probably better than we were expecting" but saw "no positive catalyst for the shares."