Wickes, the well-known home improvement retailer, reported a promising return to growth over the summer.
- Revenue saw a 2.1% increase, with retail sales jumping by 4.7% in the third quarter of the year.
- Despite a previous decline, the design and installation segment showed signs of stabilising, although it remains challenged.
- Tradepro, the membership scheme for professionals, was a highlight, reporting a significant 16% sales growth.
- Analysts, however, forecast a potential dip in sales by the year’s end due to diminishing DIY demand.
Wickes, the prominent home improvement retailer, has announced a notable return to growth during the summer. Revenue climbed by 2.1%, bolstered by a substantial 4.7% rise in retail sales for the third quarter. This positive development follows a 3.6% drop in group revenue reported for the preceding quarter.
Despite operating under challenging market conditions, Wickes’ design and installation sector displayed signs of stabilisation. The business observed a 13.3% decline in this area compared to the previous year. However, this figure represents an improvement from the more severe 18.9% drop recorded in the prior quarter.
The firm’s Tradepro membership scheme, specifically designed for professionals, emerged as a strong performer. Commenting on this success, Wickes’ chief David Wood noted the substantial 16% increase in sales year-on-year. Furthermore, active Tradepro memberships grew by 18% to 564,000, as many professionals opted to engage with the scheme.
Although the retailer appears on track for the full year and positions itself positively for 2025 and beyond, caution is advised moving forward. Analysts at Panmure Liberum suggested that retail improvements were driven by pent-up demand due to summer weather conditions and anticipate a decline in sales for the fourth quarter. The expectation is set against the backdrop of increased interest in loft insulation sales amid government discussions on winter fuel payments.
Wickes is expected to publish its trading update for the fourth quarter in late January 2025, which will provide further insights into the evolving market dynamics.
Wickes experiences growth but faces challenges from a projected decline in DIY demand.
