Despite challenges, Wickes remains optimistic in the volatile DIY market.
- The company’s adjusted pre-tax profit fell nearly 25% in the first half of 2024.
- Retail revenue rose slightly, although design and installation sales declined significantly.
- Wickes achieved new heights in market share for its retail division, especially in decor.
- CEO David Wood remains positive about future growth and market opportunities.
Wickes has experienced a challenging year, with adjusted pre-tax profit dropping almost 25% to £23.4 million in the first half of 2024, a noticeable decrease from £31.1 million during the same period in the previous year. However, statutory profit before tax exhibited a contrary trend by increasing 8.5% to £22.9 million. The fluctuations reflect the broader difficulties within the home improvement market.
In spite of the profit decline, Wickes managed a 1% rise in retail revenue. Contrarily, sales related to design and installations took a severe hit with a 17% decline. These mixed results were influenced by a general slowdown affecting the home improvement sector, a situation echoed across various industry players.
Remarkably, Wickes celebrated record market share gains in its retail division during the first half, noting significant advances particularly in decor, garden, tiles, and flooring areas. The TradePro membership scheme for tradesmen also showed growth, with a 14% increase in sales and membership numbers surpassing one million for the first time.
The environment for big-ticket purchases proved challenging. Yet, CEO David Wood highlighted the company’s balanced business model, which has enabled it to sustain volume growth and market share. Wood’s confidence in the business’s strategic direction and its appealing product offerings like the Wickes Lifestyle Kitchen range showcases potential for continued growth.
Looking ahead, Wickes maintains its profit outlook, buoyed by improved trading trends in the third quarter. David Wood’s optimistic stance is centered around its solid customer propositions and strategic focus on cost control. Though market conditions remain tough, Wickes believes it is well-positioned to capitalise on future opportunities.
Wickes remains resilient amid market challenges, underpinned by strategic growth and market share gains.
