Wickes Group PLC on Wednesday backed guidance despite reporting continued pressure on sales in the first half reflecting challenging market conditions in Design & Installation.

‘Whilst the trading environment remains uncertain, given the resilient first half in Retail and our continued focus on costs, the overall outlook for adjusted profit before tax for 2024 remains unchanged,’ Wickes said in a statement.

The Watford, England-based building supplies retailer said group revenue in the 26 weeks to June 29 fell 3.4% to £799.9 million, or by 3.9% on a like-for-like basis.

Comparable sales in the 13 weeks to June 29 fell 4.4%, the fall picking up pace after a 3.3% decline in the prior 13-week period.

Retail LFL sales rose 0.6% in the first half to £633.2 million, while Design & Installation LFL sales slumped 18% to £166.7 million.

In the second quarter, retail LFL sales fell 0.2% and Design & Installation LFL sales fell 19%.

Wickes said retail sales remain resilient with growth in the first half driven by volume, with selling price deflation of around 3%. The timing of Easter this year reduced retail LFL sales in the second quarter by 1.4%.

Within retail, TradePro sales rose 14% in the half, reflecting a ‘healthy’ pipeline of work for local trade professionals and continued sign-ups to the TradePro scheme.

But Design & Installation sales slipped, reflecting continued soft consumer appetite for larger ticket purchases and a strong comparative.

Wickes is targetting further cost savings in the unit alongside productivity initiatives.

Shares in Wickes rose 2.9% to 152.13 pence in London on Wednesday morning.

Copyright 2024 Alliance News Ltd. All Rights reserved.