Wickes Group Stays on Course for 2023 despite Falling Sales in DIFM Business

Wickes Group, the London-listed home improvement retailer, has reaffirmed its guidance for 2023, despite experiencing a decline in like-for-like sales at its do-it-for-me (DIFM) business. The company attributes this fall to normalizing orders and delivery delays, which it expects to persist throughout the year.

During the third quarter, sales at Wickes’ DIFM business dropped by 4.4% as the order book returned to normal levels compared to the first half of the year, resulting in delayed deliveries. Although measures are being taken to address this issue, the company anticipates that delivered sales will be impacted in the fourth quarter and will now be fulfilled in 2024.

In the period, DIFM orders experienced a modest decline, with September witnessing a particularly sharp decrease as customers took more time to commit to significant purchases.

The DIFM business, which accounts for approximately 24% of the group’s sales, faced challenges in the past year, with DIY sales remaining moderately lower than the previous year. However, like-for-like sales at Wickes’ core business grew by 1.1%, marking the first volume growth since the second quarter of 2021. Additionally, the company highlighted the continued double-digit growth of its TradePro rewards scheme for tradespeople, which is witnessing strong customer base expansion.

Market consensus predicts that Wickes Group’s adjusted pretax profit for 2023 will fall within the range of £45.3 million to £49 million ($55.3 million to $59.8 million).