Wickes lifts full year profit guidance
The Wickes home improvement retailer has raised its full year profit guidance following a continued good performance in its fourth quarter to date.
In a trading update, the retailer said it has benefited from its balanced business model in the period, with sales coming in line with expectations.
Wickes now expects full year adjusted pre-tax profit to be no less than £83 million.
David Wood, chief executive of Wickes, said: “This has been a period of further progress for Wickes, where our focus on value, stock availability and exceptional service have underpinned our customer offer.”
Delivered sales in Wickes’ Do It For Me category are strengthening as the company works through a higher order pipeline. In addition, it is expecting to have a higher carry over order book in the category which will benefit the first half of the new financial year.
As expected, sales in Wickes’ core categories are currently lower year-on-year against tough comparatives, but are ahead on a two-year basis. However, margins have come in better than expected due to the retailer being able to mitigate pressures resulting from rising inflation and freight costs.
Looking ahead, Wickes said its trading environment continues to remain uncertain.
Wood added: “Our forward planning and early strategic decisions have resulted in an improved profit performance, and we continue to navigate inflationary pressures and raw material constraints well.
“Clearly, this remains a time of uncertainty, however our differentiated business model leaves us well-placed to continue to outperform within a large and growing home improvement market.”
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