Wickes profits slide after weak demand for big-ticket home improvements

Yahoo

20-03-2025

Wickes has revealed a drop in profits and sales for the past year after cash-strapped customers pulled back on big-ticket purchases.
However, shares in the company lifted higher in early trading on Thursday after it pointed to a 'good start' to trading in 2025.
It came as the home improvement retailer revealed that group revenues slipped by 1% to £1.55 billion last year, compared with the previous year.
The slump was driven by 10.5% fall in sales from its design and installation business amid weaker demand from homeowners seeking to launch large renovation projects.
However, resilient demand from shoppers for DIY products helped retail sales grow by 1.9% for the year.
The Watford-based retail firm said this was also aided by strong growth among its trade customers.
Retail sales have continued to grow over the first 11 weeks of 2025, with overall trading for the year so far 'in line' with company targets.
Wickes highlighted that it has witnessed 'challenging' recent trading conditions but that the loss of sector rivals such as Homebase, Carpetright, CTD Tiles and Wilko is 'presenting an opportunity' for the firm.
The group saw adjusted pre-tax profits drop by 16.2% to £43.6 million for the year, although this was at the 'upper end' of market forecasts.
David Wood, chief executive of Wickes, said: '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.
'Given the strong progress over the last 12 months and the good start to Q1, we are well on track for the coming year.'
Julie Palmer, partner at Begbies Traynor, said: 'Wickes has delivered a mixed performance as it grapples with the ongoing squeeze on household budgets, but its value-focused offering has clearly helped to keep customers engaged.'
Shares were up 5.7% in early trading on Thursday.