Wickes owner Travis Perkins posts drop in sales and profit
Travis Perkins has posted a drop in both sales and profits in the six months to 30 June.
The news follows the company’s June announcement that it would be closing 165 branches as part of a restructuring exercise.
Revenue declined by 20.2% to £2.79 billion in the half year while adjusted operating profit fell by 80.9% to £42 million.
The company operates the Travis Perkins builders merchant chain as well as the Wickes retail brand.
Nick Roberts, Travis Perkins chief executive, said: “Although our financial performance in the first half of 2020 was impacted by the Covid-19 pandemic, and we have had to undertake a restructuring programme in light of the challenging outlook for the group’s end markets, we have made significant strategic and operational progress against the four strategic priorities we outlined at our full year results in March 2020.”
Travis Perkins said total sales at Wickes declined by 8.5% in the half although there was a strong recovery throughout the retailer’s second quarter. After the closure of Wickes stores in March due to the Covid-19 lockdown, the shops reopened in late May which led to an acceleration in DIY sales and like-for-like sales growth of 22% in June. Meanwhile, online sales climbed by 115% in the six month period with sales growth particularly strong in the gardening and painting and decorating categories.
Looking ahead, Roberts added: “Although considerable uncertainty around the impact of the Covid-19 pandemic remains, the actions we have taken to adapt and innovate in our businesses mean that the group is well placed to continue to service our customers, support our colleagues, outperform our markets and generate value for our shareholders.”
