- Shares plunged in Wickes Group PLC on Tuesday after it noted ‘signs of softening’ in the DIY market in recent weeks, leading it to expect a fall in annual profit.

Shares in the Watford, England-based DIY retailer were down 20% at 135.70 pence in London on Tuesday morning.

For the 26 weeks to July 2, like-for-like sales growth was 0.8% year-on-year. This comprised a 4.0% decline in the first quarter offset by growth of 5.4% in the second quarter.

Core like-for-like sales were down 5.5% in the half, while ’do-it-for-me’ sales were up 30%.

The company said Local Trade sales performed very strongly, with its TradePro customer base increasing by 60,000 to 690,000 during the first half. However, it noted: ‘DIY sales remain below last year and although activity is ahead of pre Covid levels, there have been signs of the market softening in recent weeks.’

Wickes added: ‘Whilst comparatives for Core sales ease in the second half, trading in recent weeks in DIY and a softer outlook for the DIFM market suggest customers are reacting to the uncertain macroeconomic backdrop as we enter the second half of our financial year.’

It expects full-year adjusted pretax profit in a range of £72 million to £82 million, which would be below the £85.0 million achieved in 2021.

Copyright 2022 Alliance News Limited. All Rights Reserved.