Wickes profit slips as cautious consumer spending hits FY24 performance
Wickes is targeting a "significant opportunity for long-term growth" after delivering "strong market outperformance in FY24" despite a challenging trading environment.
Wickes is targeting a “significant opportunity for long-term growth” after delivering “strong market outperformance in FY24” despite a challenging trading environment.
The home improvement retailer reported a 1.8% increase in total group sales to £738.9m in the 26 weeks to 28 December, with retail sales up 3% to £579.1m, driven by strong demand for interior paint, decorative accessories, and garden projects.
Like-for-like sales in its design & installation division fell 13.9% for the full year, but performance improved in the second half, with ordered sales moving into year-on-year growth in Q4.
Wickes said this was a result of enhancements to its offer, including a “simplified customer journey” and a stronger digital booking experience.
TradePro continued to deliver “yet another period of double-digit sales growth,” with membership surpassing one million in September.
The business said sales from active TradePro members grew 14% over the year, despite tradespeople managing material quantities more carefully.
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Looking ahead, the retailer pointed to opportunities in the UK home improvement sector, which it described as a “large and attractive market” worth around £27bn, with specialist DIY sales forecast to grow 16% between 2024 and 2029.
It also noted the exit of several competitors, including Wilko and other retailers like Homebase and Carpetright, which it sees as a chance to capture further market share.
Chief executive David Wood said: “2024 was a year of strong progress for Wickes as our balanced business model and brand strength saw us continue to deliver for customers and take further market share.
“We grew volumes and share throughout the year in Retail as customers bought more of our products for their home improvement projects, however big or small. In Design and Installation, we have been encouraged by a return to growth in ordered sales in Q4 following the actions we took to enhance our customer offer and experience.
“Given the strong progress over the last twelve months and the good start to Q1, we are well on track for the coming year. I would like to thank my colleagues for their continued hard work and support and, together, we remain focused on helping the nation feel house proud.”
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