'We’ve delivered a strong third quarter': Wickes reveals accelerating sales growth

Home improvement retailer Wickes has revealed accelerating sales growth as customers saw prices start to rise again.

Wickes boss David Wood said the group is on track to meet profit guidance for the year after “good momentum” in recent months.

On Tuesday, the London-listed firm said it saw a “significantly improved performance” from its core retail business over the latest quarter.

It reported that total group sales grew by 4.5% to £439 million for the three months to September 26, compared with the same period a year earlier.

It reflected faster growth for the business, improving from 2.3% growth in the previous quarter.

Retail sales jumped by 6% to £331 million for the quarter, helping to offset slower growth from the firm’s design and installation operation.

Wickes said customer growth was driven by stronger volumes but it added that “mild” price inflation is “starting to come through” after a sustained period of easing prices.

The company said it is outperforming the wider market on the back of strength in timber, flooring, roofing and garden products.

Within retail, the firm also reported an 8% increase in sales through its TradePro business, which connects customers with tradespeople.

The retail group opened two new stores, in Saffron Walden, Essex, and Colne, Lancashire, during the quarter, alongside three store refits.

Mr Wood, chief executive of Wickes, said: “We’ve delivered a strong third quarter, with growth accelerating across retail as more customers choose Wickes for their home improvement projects.

“Our continued market share gains demonstrate the strength of our value-led proposition and our ability to outperform in a competitive market.

“With good momentum across the business, we remain on track to deliver market expectations for full-year profit.”

AJ Bell investment director Russ Mould, said it was a resilient update from home improvement retailer Wickes, “suggesting the business is on solid foundations despite a tricky trading environment”.

He added: “The company continues to benefit from its strategy of targeting trade customers. This cohort is a more reliable and consistent source of revenue than ordinary punters. That’s because materials and tools are not a nice-to-have for them but essential to their day job. The trade part of the business is also benefiting from the shift from Do-It-Yourself to Do-It-For-Me.

“Some of this growth was down to price inflation but, crucially, Wickes is growing volumes too as it grabs market share from its rivals. This suggests Wickes has got its proposition right as it also makes efforts to revamp its store estate.

“Where Wickes is faring less well is on the design and installation side where like-for-like revenue was in reverse. This was down to customers being more reluctant to splash out on bespoke kitchens.

“This is no great shock given the pressure on household finances and Wickes will hope this is spending which might return if or when the backdrop improves.”