- Trading was driven by warmer weather and volume-led demand in its retail arm
Wickes Group shares soared on Tuesday after the DIY and trade home improvement revealed a ‘strong start’ to the year.
The Watford-based retailer saw turnover grow by 6.9 per cent to £553.1million in the period between January and 26 April.
Trading was driven by warmer weather and volume-led demand in its retail business, which saw its like-for-like revenues increase by 9.2 per cent as price inflation stayed near zero.
Wickes saw bumper 13 per cent growth in its TradePro loyalty scheme after membership numbers jumped by 14 per cent to 605,000, while an uptick in customer transactions boosted DIY sales.
Members are estimated to spend around 10x the amount spent by a typical DIY customer, so trade growth is an important revenue driver for Wickes.
David Wood, the firm’s chief executive, also noted that the retail division achieved market share growth following ‘a very good market outperformance’ in categories like timber, hardware, and garden.
By comparison, design and installation sales dipped by 0.4 per cent to £136.4million as homeowners continued to put off major renovation projects.
Bumper performance: Wickes Group shares soared on Tuesday after the home improvement giant reported a ‘strong start’ to the year
However, the decline was much more shallow relative to 2024, when they plummeted by 10.5 per cent overall.
Following the trading update, shares in Wickes climbed 8.5 per cent to 214p by late Tuesday afternoon, making them the FTSE All-Share Index’s biggest riser.
It also means the company’s shares have jumped by around 41 per cent since the year began.
Wood said: ‘This has been a strong start to the new financial year, with the further increase in sales driven exclusively by volume growth, as more customers shop with us.
‘While we continue to be mindful of consumer sentiment and a challenging external environment, we have a strong platform in place and we are well set to continue delivering against our strategy.’
Despite admitting it faces ‘significant cost headwinds’ and an ‘uncertain’ consumer outlook, Wickes claimed it was ‘comfortable’ with current earnings expectations.
Consensus analyst forecasts have the business, which was previously owned by Travis Perkins, scoring adjusted pre-tax profits of between £45.6million and £51million in 2025.
Russ Mould, investment director at AJ Bell, said: ‘There are certainly clouds on the horizon – with Wickes acknowledging the cost pressures it is facing and the uncertain outlook for consumer sentiment.
‘It’s understandable and laudable that management are wary of the risks they face but, for now, they seem to be mitigating them and laying the foundations for future growth.’
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