Wickes ups profit expectations after strong trading

Wickes reported that profits are now expected to come in at no less than £83m. Before the upgrade, the retailer had anticipated earnings at ”the upper end” of £67m to £75m.

The retailer said that sales were in line with expectations over the period and its “agile business model and strong supplier relationships have resulted in a better than expected margin performance”. Wickes was also able to ”mitigate the pressures resulting from rising inflation and freight costs”.

Wickes reported that delivered sales in ‘do it for me’ services had grown and continued strong sales would bring benefits in the first half of the new financial year. The retailer said that “as expected”, core sales were lower year on year against tough comparatives but were “materially ahead on a two-year basis driven by a further strong performance from local trade” helped by its TradePro loyalty scheme.

Wickes chief executive David Wood said: ”This has been a period of further progress, where our focus on value, stock availability and exceptional service have underpinned our customer offer.

”Our forward planning and early strategic decisions have resulted in an improved profit performance, and we continue to navigate inflationary pressures and raw material constraints well. Clearly, this remains a time of uncertainty; however, our differentiated business model leaves us well-placed to continue to outperform within a large and growing home improvement market.”

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