The Works posts a record Christmas after strong first half
The Works has grown its half year revenue by 30.6% year-on-year and delivered record Christmas sales despite the emergence of the Omicron Covid-19 variant.
In the six months to 31 October, the art, crafts, book and toy retailer achieved strong two-year like-for-like sales growth of 14.5%, which was ahead of expectations.
Adjusted EBITDA came in at £2.5 million compared with £1.5 million a year ago and a reported pre-tax loss of £1 million was an improvement on the prior year’s loss of £4.3 million.
During the period, The Works continued to drive what it described as a step-change in its online offering by developing complementary range extensions and investing in its platform, digital marketing capabilities and fulfilment capacity. It also worked to improve the in-store shopping experience through better space management and improved merchandising standards.
The Works opened three new stores, closed five and relocated four in the half-year and said the new and relocated stores have performed significantly ahead of expectations.
Gavin Peck, chief executive of The Works, said: “Our performance in the first half shows that our improved customer proposition, clarified purpose and the successful execution of our strategy are delivering tangible results. We delivered a record Christmas, demonstrating the increasing appeal of our customer offer and despite uncertainty over the impact of Omicron and the ongoing supply chain challenges faced throughout our sector.”
Giving an update on more recent trading in 11 weeks to 16 January 2022, The Works said sales have remained strong, with a two-year like-for-like growth of 9% and store sales increasing by 0.6% and online sales by 71.9%.
It added: “Despite ongoing supply chain disruption, inflationary pressures and residual uncertainty surrounding possible COVID-19 related restrictions, we enter 2022 in a strong financial position and remain confident that we are well placed to make progress on the many attractive opportunities that lie ahead.”
