WICKES GROUP PLC: Trading Update

26 May 2022          

Wickes Group plc Trading Update for the 20 weeks to 21 May

Performance in line with expectations, full year guidance reaffirmed

Ahead of its AGM later today, Wickes Group plc ("Wickes"), the market-leading home improvement retailer, announces year-to-date trading in line with expectations and reaffirms full year guidance.

David Wood, CEO of Wickes, commented:

I am delighted to report continued momentum, and a promising start to the year where we continue to take market share. This performance is testament to the strength of our uniquely balanced business across Trade, DIY and DIFM and it has been achieved against strong prior year comparatives. I am particularly proud of our long-term performance, with sales remaining significantly ahead of pre-lockdown levels.

"Our focus remains on providing our customers with the products and services they need at great value. Our commitment to exceptional value has proven particularly effective amongst our local trade customer base, who continue to turn to us at a time when their own order books are at record levels.

Our growth levers are delivering strong returns and we are excited about our plans to optimise our store estate with refits and new stores. Looking ahead, while we remain mindful of the uncertain macroeconomic environment, we continue to be confident of the opportunities available to Wickes within the large and growing home improvement market.

Group LFL sales for the first 20 weeks are down (0.6%) versus the prior year. Core LFL sales are (7.2%) down, with delivered DIFM sales up by 30.9%. On a three-year basis, which compares with the pre-Covid period, total group sales are 22.4% ahead.

Core sales reflect continued buoyant demand in Local Trade with trade customer order books remaining at record levels. Participation in our TradePro scheme remains strong and we have added over 40,000 customers in the year to date. Like many businesses, we have seen Inflation continue during the period, and we are managing this responsibly while maintaining our leading price position.

DIFM delivered sales growth was excellent, resulting from the successful conversion of the elevated pipeline of orders at year end and a strong Winter sale. Installation lead times have returned closer to more normal levels, and we continue to expect delivered sales for the full year to be ahead of 2019.

Table 1: One and two year LFL data

Notes: As a result of the 53rd week in 2021, Q1 2022 LFL is based on the comparable 13 weeks to 3 April last year. Core sales were affected towards the end of Q1 by the timing of Easter. DIFM represents delivered sales. Looking ahead, two year comparatives become less meaningful and we will provide three year data.

Table 2: One and three year LFL data

Notes: As a result of the 53rd week in 2021, Q1 2022 LFL is based on the comparable 13 weeks to 3 April last year. Core sales were affected towards the end of Q1 by the timing of Easter. DIFM represents delivered sales.

About Wickes

Wickes is a digitally-led, service-enabled home improvement retailer, delivering choice, convenience, value and best-in-class service to customers across the United Kingdom making it well placed to outperform its growing markets. In response to gradual structural shifts in its markets over recent years, Wickes has a balanced business focusing on three key customer journeys - Local Trade, DIY (together "Core") and Do-it-for-me ("DIFM").

Wickes operates from its network of 231 right-sized stores, which support nationwide fulfilment from convenient locations throughout the United Kingdom, and through its digital channels including its website, TradePro mobile app for trade members, and Wickes DIY app. These digital channels allow customers to research and order an extended range of Wickes products and services, arrange virtual and in-person design consultations, and organise convenient home delivery or click-and-collect.