Wickes sales fall on IT disruption and pressures on consumer spending
The group saw sales fall 0.2% in the third quarter after a 4.4% tumble at its kitchen and bathroom installation business.
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DIY and building supplies firm Wickes has revealed falling sales after IT disruption and with cash-strapped homeowners more reluctant to make major purchases.
The group saw like-for-like sales fall 0.2% in the third quarter after a 4.4% tumble at its Do It For Me (DIFM) kitchen and bathroom installation business.
It said trading in the arm was knocked by issues with a switch to new customer order software, which will continue into the fourth quarter, meaning that full-year sales in the division will now be lower.
It comes on top of a pull back in spending on home renovation projects since the pandemic and as the cost crisis has impacted demand.
The 230-strong chain said customers were “taking longer to commit” to so-called big ticket purchases, with this particularly being seen in September.
But the firm’s core DIY materials and builders’ merchant business was more resilient, with sales up 1.1% in the three months to September 30 and Wickes cheering a return to sales by volume for the first time since the second quarter of 2021.
David Wood, chief executive of Wickes, said: “In our core business we have gained further market share and achieved a return to volume growth.
“We have fulfilled strong demand from our trade customers and been encouraged by greater stability in DIY.”
The group said it remained on track with full year City expectations for full-year underlying pre-tax profits of between £45.3 million to £49 million.
Shares in the firm lifted 3% in Friday morning trading.