Wickes reaffirms half-year profit guidance

Wickes confirmed its half-year profit guidance on Wednesday as it reported a jump in like-for-like sales, driven by DIY and local trade, while its full-year outlook remains in line with expectations.

In the 26 weeks to 26 June, LFL sales rose by 33.1% year-on-year, and 22.4% on a two-year basis. Wickes, which was demerged from Travis Perkins earlier this year, said the "strong" performance continued through the second quarter, with LFL sales growth ahead by 47.6%, and 19.7% on a two-year basis.

The company said that driven by local trade and DIY, core volume continued to grow "strongly" across a broad range of categories and "we remain focused on investing in our leading digital proposition which continues to drive market outperformance".

Although DIFM (Do-it-for-me) sales in the first half were dented by the closure of its in-store kitchen and bathroom showrooms due to Covid restrictions, Wickes said its "virtual sales journey continued to resonate well with customers".

Since reopening, ordered sales have grown by more than 30% on a two-year basis, which Wickes said will support positive delivered sales growth in the second half. Ordered sales are sales at point of order rather than delivery/project completion which triggers sales recognition in the accounts.

The group reaffirmed its guidance for first-half adjusted pre-tax profit of around £45m and said the outlook for the full year is in line with expectations despite the ongoing Covid impact.

Chief executive David Wood said: "We are managing to navigate inflationary pressure and industry wide raw material constraints by working closely with our suppliers, and we remain on track to continue to grow in a responsible and sustainable way, providing our customers with the products they need at the best possible value."