- ‘Good growth momentum’ across business
- Warm weather tailwind
- Market backdrop remains ‘challenging’
Shares in Wickes (WIX) rose 10% to a three-year high of 215p after the home improvement retailer reported a ‘strong start’ to 2025 with first-quarter sales boosted by warmer weather.
There was also relief as the DIY-store operator said it remains ‘comfortable’ in meeting the £47.7 million consensus full-year pre-tax profit estimate, despite higher labour costs and what CEO David Wood called a ‘challenging external environment’.
SUNNY UPDATE
With a tailwind from warmer weather, group revenue grew 6.9% year-on-year in the 17 weeks to 26 April 2025, with the Watford-headquartered company calling out ‘strong volume-led’ retail sales, which rose 9.2% on a like-for-like basis.
Wickes increased market share further as it benefited from ‘particularly strong’ performances in the building, garden and decorating categories.
‘Within Retail, we have gone from strength to strength,’ insisted Wood. ‘We have taken further market share and seen a very good market outperformance in timber, hardware, decor and garden.’
Investors also welcomed the improving trend in Wickes’ project-based Design & Installation division.
Although like-for-like sales were down 4.2%, Design & Installation delivered a second consecutive quarter of order growth following actions taken to improve the customer proposition.
STRONG GROWTH SOURCE
Wickes’ Trade segment, which sits within retail and services local trade professionals, remains a strong source of growth for the company. TradePro sales were up 13% in the quarter, supported by growth in TradePro memberships, which increased by 14% year-on-year to 605,000.
‘The actions we have taken to invest in our growth levers and productivity programme have set us up well for a successful 2025,’ insisted Wickes.
‘Whilst the consumer outlook remains uncertain and the business faces significant cost headwinds, we have made a good start to the year and remain comfortable with current consensus expectations for adjusted PBT in 2025.’
FIRM FOUNDATIONS
Russ Mould, investment director at AJ Bell, observed that Wickes is seeing ‘a strong showing in DIY and its TradePro loyalty scheme is reaping real benefits as the company gets repeat revenue’.
Mould added: ‘Design and installation work is also recovering after a difficult period, suggesting the action the company has taken to improve its offering is paying off.
‘It’s understandable and laudable that management are wary of the risks they face but, for now, they seem to be mitigating them and laying the foundations for future growth.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (James Crux) and the editor (Steven Frazer) own shares in AJ Bell.
