Wickes half year profits exceed expectations
DIY retailer Wickes has seen its half year profits exceed expectations after it benefited from a surge in people looking to improve their homes during Covid-19 lockdowns.
In the six months to 26 June, the retailer saw its adjusted pre-tax profit increase to £46.5 million, which was ahead of guidance of around £45 million. In addition, like-for-like revenue rose by 33.1% year-on-year and by 22.4% on 2019,
Wickes said its digital strength and capability is continuing to underpin its performance with two thirds of sales driven by digital channels.
David Wood, Wickes chief executive, said: “This is a strong first half performance underpinned by our attractive digitally-led, service-enabled proposition. In our first set of results since demerger, we have delivered an increase in sales and profits as we continue to help the nation feel house proud.
“As a business we have responded well to the increase in demand across our three routes to market, supporting all our customers. I would like to thank each of my colleagues for their continued hard work and support.”
Following the re-opening of Wickes ‘Do-it-for-me’ showrooms on 12 April, ordered sales grew strongly throughout May and June then settled back to being to be broadly in line with 2019. The retailer said demand for kitchen and bathroom installers, combined with ongoing product supply restrictions, meant lead times to project completion were extended which will result in a higher carry over order book into next year.
Wickes now expects its full year adjusted pre-tax profit to come in towards the upper end of analysts’ expectations.
Wood added: “While the immediate external environment remains volatile, we look to the future with confidence. We expect to deliver a full year adjusted Profit Before Tax towards the upper end of expectations, and beyond that, we have the right business model to win over more customers and capitalise on the growth opportunities within a large and growing home improvement market.”