Wickes returns to growth but warns pent up DIY demand is easing
Home improvement firm Wickes reported it had returned to growth over the summer today but warned its sales were likely to wane as pent up DIY demand eases in the coming months.
The London-listed retailer reported a 2.1 per cent growth in revenue, or 0.4 per cent on like-for-like metrics, with retail revenue growing by 4.7 per cent. Group revenue had contracted 3.6 per cent in the previous three months.
Bosses said sales in its design and installation business had stabilised despite “challenging conditions”, with a 13.3 per cent slide on the same period last year. The decline marked a slowdown in the sharp 18.9 per cent fall in the previous quarter.
“We’ve seen pleasing further progress in retail, successfully growing volumes and increasing market share, driven by a particularly strong performance in Tradepro,” said Wickes chief David Wood.
Treadepro, Wickes‘ membership business for professionals, saw sales rise 16 per cent year-on-year throughout the quarter. Active Tradepro members have increased 18 per cent year-on-year to 564,000 as professionals flocked to the scheme.
Wood added the firm “remain[s] on track for the full year” and was “well positioned for 2025 and beyond.”
However, analysts at Panmure Liberum said the numbers had failed to impress today and sales were expected to dip through the final three months of the year.
“Yes, there was an improvement in retail, but that was pent up demand following the wet start to the summer – this is expected to wane in Q4,” said the bank’s analysts, Wayne Brown and Anubhav Malhotra.
“With press talking about sales of loft insulation rising rapidly due to government winter fuel payments saga – maybe we were hoping for more today,” they added.
Wickes expects to report its fourth quarter trading update in late January 2025.