Travis Perkins, the builders’ merchant that owns DIY chain Wickes, has warned that profits will be at the low end of expectations.
The news has sparked fears about the prospects of other home enhancement retailers, such as Kingfisher’s B&Q.
In the 39 weeks to September 27, Wickes increased turnover by 1.2 per cent. However, like-for-like sales per trading day fell 2.6 per cent and gross margins were “slightly below” last year as a result of promotions.
Travis Perkins expects business to grow this year, but cautioned: “We are taking further action to prepare the group in advance of the expected steeper decline in activity.”
Pali International analyst Nick Bubb said: “Wickes is holding up relatively well and is taking share, but their like-for-like sales are fading and the read-across can’t be good for B&Q.”
No comments yet