Wickes reveals strong profit rise in first results since demerger

The home-improvement specialists reported profits before tax of £46.5m, soaring 221% year on year.

Sales at Wickes also increased 33% on a like-for-like basis in the 26 weeks to June 26, driven by the home-improvement trends seen in lockdown and beyond.

The retailer is now set to pay its first dividend since the demerger and listing on the London Stock Exchange.

Chief executive David Wood told Retail Week that around two-thirds of sales for the retailer took place online, with penetration continuing at the same level despite the 33% growth in the business.

He revealed there had been a slight drop in orders for click and collect since stores reopened, with customers opting for home delivery or to come into store and interact with staff when making purchases. 

He said the outlook for the home improvement sector remained positive – with trade customers forward booked for projects until after Christmas and DIYers turning to garden improvement over the summer.

Wood added in his statement: “This is a strong first-half performance underpinned by our attractive digitally led, service-enabled proposition.

“In our first set of results since the demerger, we have delivered an increase in sales and profits as we continue to help the nation feel houseproud.

“As a business we have responded well to the increase in demand across our three routes to market, supporting all our customers. I would like to thank each of my colleagues for their continued hard work and support.

“Throughout this period, our strong relationships with suppliers means we have navigated inflationary pressures and raw material constraints well – and this remains the case. We continue to provide customers with the products and services they need at the best possible value. 

“While the immediate external environment remains volatile, we look to the future with confidence. We expect to deliver a full-year adjusted profit before tax towards the upper end of expectations, and beyond that, we have the right business model to win over more customers and capitalise on the growth opportunities within a large and growing home improvement market.”