Books, arts and crafts, and toys retailer The Works has reported that full-year profits will be higher than anticipated as its growth strategy bears fruit.
The Works, which positions itself as the “leading specialist retailer of affordable, screen-free activities for the whole family”, expects adjusted EBITDA to come in at approximately £14m – a 47% uplift.
In a trading update covering the year to May 3, The Works said that total revenue was up 3.2% to £260m and like-for-likes rose 3.3%.
Product margin rose 240bps year on year, “reflecting ongoing focus on supplier negotiations, tighter control of stock and promotional markdowns, and product mix improvements”.
The performance reflects The Works’ continuing operations, following the closure of its transactional website earlier this year. The retailer said its ongoing ‘Elevating The Works’ growth strategy had helped drive “outperformance against the wider non-food retail market”.
The Works chief executive Gavin Peck said: “We delivered very strong strategic and financial progress during FY26. This was driven by sales growth across all four of our key product categories, reflecting the diverse and increasing year-round appeal of the group’s product proposition.
“Our outperformance against the broader high street supports our strong conviction that The Works’ brand and product proposition, which is aligned to families’ growing demand for affordable screen-free activities, is increasingly relevant and underpins our plans for further growth.
“While we remain mindful of the challenging macroeconomic environment, the board is confident that The Works is well placed to achieve further strategic progress and profitable growth in FY27.”
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