Wickes has reported growth over the summer, yet remains cautious about future sales as DIY demand tapers.
- The home improvement retailer saw a 2.1% revenue increase and a 4.7% rise in retail sales during the third quarter.
- Despite challenging market conditions, Wickes’s design and installation business showed signs of stabilization.
- Tradepro, Wickes’s professional membership scheme, significantly contributed to growth with a 16% sales boost.
- Analysts express concern over potential sales decline in the final months of the year.
Wickes, the renowned home improvement retailer, has announced a return to growth during the summer months. The company recorded a 2.1% increase in revenue and a 4.7% rise in retail sales in the third quarter. This positive performance comes on the heels of a challenging second quarter that saw a 3.6% drop in group revenue.
The company has faced ‘challenging conditions,’ particularly within its design and installation services. However, the business has shown signs of stabilization with a 13.3% decrease compared to last year. This decline is less severe than the 18.9% fall recorded in the previous quarter, indicating potential recovery.
A key driver of growth has been the Tradepro membership scheme, which caters to professionals. The scheme saw a remarkable 16% increase in sales year-on-year, with active memberships rising by 18% to a total of 564,000. David Wood, Wickes’ executive, highlighted this achievement, noting that the company is ‘well-positioned for 2025 and beyond.’
Nevertheless, not all outlooks are optimistic. Analysts at Panmure Liberum, Wayne Brown and Anubhav Malhotra, have expressed cautious perspectives on Wickes’ future performance. They suggest that the recent improvement in retail may have been driven by ‘pent up demand’ following adverse summer weather. As a result, they anticipate a slowdown in sales by the fourth quarter.
Wickes plans to release its fourth-quarter trading update by the end of January 2025, which will provide further insights into its yearly performance and future projections.
Despite a strong summer performance, Wickes faces ongoing challenges as it braces for a potential sales decrease in the coming months.
