The Works ‘pleased with progress’ despite broadly flat sales

The retailer delivered total revenues of £123.8m in the 26 weeks to November 2, down 0.3% on last year but up 0.3% on a like-for-like basis.

Store like-for-like sales were up 4%, which it attributed to more customer-focused marketing campaigns, new ranges resonating well with customers and the early successes of its space optimisation initiative.

Online revenues continued to fall, plunging 36% in the half. The Works said the drop reflects the impact of operational challenges experienced following the transition to a new third–party fulfillment partner. Ecommerce represents less than 10% of sales.

The retailer reported sustained product margin growth, which was up 300 basis points, and ongoing cost savings have helped to more than offset cost headwinds during the half.

Looking ahead, The Works said it was “well positioned” to optimise store sales during the peak trading period despite subdued consumer confidence. 

This, along with sustained product margin growth and ongoing cost savings, means the retailer is “on track” to deliver its forecasted adjusted EBITDA of £11m.

The Works chief executive Gavin Peck said: “We are pleased with the progress made in the first half of FY26, having delivered a number of important strategic initiatives, a strong performance in-store and ongoing margin growth. 

“Our focus on delivering screen-free activities for the whole family is resonating with customers and, notwithstanding the challenging retail backdrop and ongoing online capacity constraints, we are on track to deliver further strategic and financial progress in the remainder of the financial year and beyond.”