The Works has reported narrowing losses as it unveils a new strategy to drive a ‘significant improvement’ in performance

In the 26 weeks to November 3, the retailer reported a 1.3% revenue growth to £124.2m, but like-for-like sales declined 0.8%. Store like-for-like sales inched up 0.9% while online sales fell 14.7%.

Adjusted loss before tax narrowed year-on-year from £10.4m to £6.5m thanks to The Works’ cost saving plan.

Christmas trading in the 11 weeks to January 19 saw store sales increase 1% with a “strong end to Christmas trading continuing in January”.

The retailer has developed its new “elevating The Works” strategy underpinned by three strategic drivers: growing brand fame, improving customer convenience, and being a lean and efficient operator.

It expects the new strategy to have a “transformative impact” on the business and deliver sales in excess of £375m and an EBITDA margin of at least 6% within five years.

The works does however, expect cost headwinds of around £6.5m in the full year 2026 due to the rise in minimum wages and increase in national insurance contributions.

The Works chief executive Gavin Peck said: “We started the financial year with a clear focus on reducing our cost base and growing margins in order to offset ongoing cost headwinds. We successfully delivered on these objectives in the first half of FY25 and are pleased to report a significant improvement in profitability year-on-year.

“Looking ahead, we are mindful of the need to navigate fragile consumer confidence and significant cost headwinds but believe there is much to be optimistic about at The Works. 

“We expect that our action to grow revenue, increase margins and reduce costs will deliver improved results in the remainder of this financial year and in FY26. We have laid the foundations for our new strategy, which will transform the business and deliver a significant improvement in performance and shareholder returns in the years to come.”