Wickes reports a resurgence in growth over the summer months.
- The home improvement retailer sees a 2.1% increase in revenue.
- Retail sales experience a significant rise of 4.7% in the third quarter.
- Design and installation business stabilises despite challenging conditions.
- Analysts anticipate a decline in sales as DIY demand decreases.
Wickes, a London-listed home improvement retailer, has announced a notable return to growth during the summer period. The company reported a 2.1% increase in revenue and a substantial 4.7% rise in retail sales for the third quarter. This recovery follows a prior 3.6% decline in group revenue, illustrating a positive shift in market performance.
The improvement in retail sales is attributed to a strong display by Tradepro, Wickes’ membership scheme for professionals, which recorded a 16% year-on-year sales boost. Active memberships have also increased by 18%, reaching 564,000, showcasing an effective engagement with professional markets. Chief Executive David Wood expressed contentment with the further progress in retail, noting the success in gaining market share and growing sales volumes in Tradepro.
Despite these gains, the company’s design and installation business has stabilised, albeit with a 13.3% drop in revenue compared to the previous year. This represents an improvement from an 18.9% decline in the preceding quarter, indicating a gradual recovery in this sector of the business.
Looking forward, Wickes remains optimistic, with Wood stating that the company is ‘on track for the full year’ and strategically positioned for 2025. However, external analysts, such as those from Panmure Liberum, are cautious about the outlook for the final quarter, projecting a possible decline in sales as the initial surge in DIY demand wanes post-summer.
Further complicating the forecast is the increase in sales of loft insulation, influenced by governmental policy on winter fuel payments, which analysts believe may have a transient effect on retail dynamics. Wickes is set to release its fourth quarter update in January 2025, providing more detailed insights into the evolving market conditions.
Wickes demonstrates growth amid current market challenges, yet remains vigilant of potential declines as DIY demand slows.
