The Works celebrates ‘successful year’ as revenues soar

In a trading update for the 52 weeks to April 28, 2019 the value retailer said its revenue increased by 13.2% year on year, while its overall like-for-like sales grew by 3%, driven by a “particularly pleasing performance” from its click-and-collect service.

The Works also said it delivered its “eighth consecutive record Christmas performance”, but due to “widely reported economic and political uncertainty” its like-for-like sales for the period did “soften”.

As a result, it said pre-tax profit would now come in “at the lower end of current market expectations”. 

During the period, The Works opened a net 50 new stores, taking the total number in its portfolio to 497. It said the return on its new stores have been “particularly strong” and management remain “confident” it will reach its target of expanding its portfolio to 1,000 stores across the UK and Ireland.

The value retailer said it was “well positioned for the future” and would continue with its growth strategy of focusing on “new store roll-outs, LFL sales growth, the development of its multi-channel proposition and margin enhancement”.

Boss Kevin Keaney said: “Overall, we have had a successful year as we continued to expand our store footprint and online proposition and introduce new customers to The Works. We achieved another record Christmas, solid like-for-like sales growth and further cash margin improvement in the year.

“Our differentiated proposition, offering a wide range of new products at outstanding value and delivered by our highly engaged colleagues, continues to be well received by our customers.

“Notwithstanding the more uncertain backdrop since January, the business has multiple growth levers and we remain confident in the future prospects for The Works.