Wickes has posted a rise in annual sales, driven by its “market-leading value proposition” amid challenging economic conditions. However, profits slipped against record numbers during the pandemic.
Over the year to 31 December, the retailer’s total revenue rose 1.8% to £1.56bn. Like-for-like sales grew 3.5% over the 12 months, with a 22.8% rise on pre-pandemic figures three years ago.
Adjusted pre-tax profit was down to £75.4m, following a record £85.0m in 2021.
The retailer attributed its performance to further market share gains in its Core business, and a “strong recovery” in delivered DIFM (Do It For Me) sales.
Wickes noted that 2022 had been a difficult year for the home improvement market due to rising inflation and interest rates. Despite remaining “mindful of the macroeconomic backdrop”, the retailer stated that it remains confident in its ability to “drive further market share gains” this year.
In the first 11 weeks of 2023, the group said that trading had been in line with its expectations. Core sales were moderately behind the same period last year, whilst Trade sales were in growth and DIY continued to normalise. In DIFM, delivered sales have been slightly ahead year-on-year due to the elevated order book.
David Wood, Chief Executive, commented: “This was a period in which we achieved record sales and made further market share gains. While profit declined, the outcome is still significantly ahead of the pre-Covid period.
“Our performance was underpinned by our balanced business model, digital leadership and ability to offer the best value and service across trade, DIFM and DIY.
“Like all businesses, we remain watchful of the external consumer environment. However, we have the right strategy and a compelling offer for customers, and look to the future with confidence. We will continue to invest across our distinctive growth levers and are well-placed to achieve further market share gains.”
