The Works narrows interim losses as online sales double

The Works reported an adjusted pre-tax loss of £4.1m in the 26 weeks to October 25, in comparison with a loss of £7.8m during the same period the previous year.

The retailer’s revenue declined 7.8% during the period to £88.9m, which the business attributed primarily to limitations of its trading due to government-mandated store closures amid the coronavirus pandemic.

The Works said that while stores were open demand was strong, and its store like-for-likes were broadly flat year on year as a result.

The retailer’s online sales also doubled during the period, buoyed by the business’ investment in a new web platform and significantly increased fulfilment capacity.

As a result, across stores and online, The Works’ like-for-like sales were up 10.6% year on year.

The retailer said that, in the 11 weeks to January 10, store closures meant its total sales declined 24.8%, although online sales were up 70% year on year.

Taking into account the performance of stores when they were able to trade and online sales, the business said it delivered 23.8% like-for-like growth, with both stores and online registering positive growth.

Chief executive Gavin Peck said: “Our interim results and trading over the crucial Christmas period reflect a robust performance given the impact of store closures as a result of government restrictions. 

“When open, our stores have performed well and our online proposition has continued to resonate strongly, supported by the investment we made to increase online capacity.  

“With our stores temporarily closed, we are, once again, focused on maximising sales through our online operations and carefully controlling costs whilst ensuring that we are able to reopen safely when restrictions allow. 

“We are in a strong financial position to face the current challenges and we remain confident in the medium-term growth potential of the business, particularly given the evident ongoing relevance of our proposition.”