The Works warns on profit
The Works saw its total revenue grow by 5.4% in the 26 weeks to 27 October, although like-for-like sales fell by 1.9%.
In a trading update, the retailer said it increased its promotional activity in the period but also focused more on controlling costs.
The Works said like-for-like sales have improved in recent weeks but are still not at a level previously expected. As a result, it is taking a more cautious view on the Christmas trading period and now expects full year pre-tax profit to be “significantly below” current market expectations.
Kevin Keaney, chief executive of The Works, said: “The consumer environment has remained challenging and we have been trading against strong comparators given last year’s mega trend. We have responded decisively to minimise the impact to our performance and are benefiting from easier comparators in the second half. We now look ahead to the busy Christmas period fully prepared and ready to deliver for our customers with a fantastic selection of good quality and great value products.”
The Works opened a net 28 stores in the first half of the year as it looks to launch 50 new stores in the full year.
The company is a multi-channel value retailer of gifts, arts, crafts, toys, books and stationery,
