Wickes Reports Higher H1 Profit, Signals Stronger Q3 Trading Trend

Wickes Group PLC (LSE:WIX) announced a modest increase in first-half profit on Tuesday, attributing the result to solid revenue growth that helped mitigate inflationary cost pressures. The UK-based home improvement retailer also signaled a positive start to the second half, stating that trading in the third quarter has shown a "significantly improved trend."

First-Half Financial Performance

For the 26 weeks ending June 27, Wickes reported an adjusted profit before tax of £27.6 million, a 1.1% increase from the same period last year. The company's performance was underpinned by a 2.1% rise in total revenue to £865.3 million.

Key financial results from the first half include:

• Statutory Profit Before Tax: £24.6 million, up from £24.2 million a year earlier.
• Interim Dividend: Increased by 2.8% to 3.7 pence per share.
• Net Cash: Stood at £151.6 million, down from £158.0 million, following dividend payments and share buybacks.

Adjusted earnings per share were lower year-on-year at 9.6 pence, which the company said was due to a higher tax charge compared to the prior-year period.

Segment Breakdown Reveals Consumer Caution

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Revenue in the core retail division, which serves both DIY and trade customers, saw a slight increase to £639.8 million. However, on a like-for-like basis, retail revenue declined by 0.3%, suggesting a challenging environment for discretionary spending.

In contrast, the Design & Installation segment, which includes kitchens and bathrooms, delivered its fifth consecutive quarter of sales growth. Revenue in this division rose to £225.5 million from £213.4 million. Wickes noted that strong demand for bathrooms and smaller "Lifestyle Kitchens" helped offset slower orders for larger, more expensive "Bespoke Kitchens," indicating that consumers are becoming more considered with major purchases.

Outlook and Corporate Strategy

Wickes reaffirmed its full-year guidance, stating it remains on track to meet consensus expectations for approximately 10% growth in adjusted profit before tax for 2026. Chief Executive David Wood said, "Our growth momentum through the first half has continued building into Q3."

The company is also continuing its expansion plans, with 4-5 new stores slated to open in the second half of the year as it progresses toward a long-term goal of 300 locations. "We remain confident in our strategy, continuing to invest for growth... to drive sustainable long-term value for shareholders," Wood added.