The Works losses narrow despite online capacity constraints

The retailer today issued both interim results for the 26 weeks to November 2, 2025 and a current trading update for the 11 weeks to January 18, 2026. For the half, adjusted EBITDA losses at the retailer narrowed to £1m, and adjusted loss before tax of £5.1m.

Total sales for the half dipped 0.3% to £123.8m, but increased by 0.3% on a like-for-like basis. Stores, which represent 90% of the retailer’s total sales, delivered 4% growth on a like-for-like basis in the period, “outperforming the wider non-food retail market”.

Online sales dropped 36%, which the retailer said reflected “the impact of operational challenges experienced following the transition to a new third-party fulfilment partner”.

Over Christmas, the retailer delivered a 1.2% increase in like-for-like store sales, but online sales were down 51.8%. The retailer said that “work is ongoing to address the operational challenges”.

Despite the operational issues, The Works said it remains on track to deliver FY26 profits in line with market expectations.

The Works chief executive Gavin Peck said: “At the heart of everything we do is our mission to become the favourite destination for affordable, screen-free activities for the whole family. This has never been more relevant given the digital age we all live in and our action to deliver this in the current financial year has been well-received by customers, existing and new.

“The strategic initiatives delivered in the first half of the financial year have been critical in driving a strong performance in-store and an improvement in profitability year on year. Along with the wider sector, we have felt the impact of a challenging consumer backdrop. However, we continued to see a positive response to our excellent value and new products over the festive period.

“Guided by our strategy, alongside the hard work of our colleagues and support of our loyal customers, we are well-positioned to deliver sales and profit growth in the remainder of the financial year and beyond.”