26th Jul 2022 09:39
(Alliance News) - Shares plunged in Wickes Group PLC on Tuesday after it noted "signs of softening" in the DIY market in recent weeks, leading it to expect a fall in annual profit.
Shares in the Watford, England-based DIY retailer were down 20% at 135.70 pence in London on Tuesday morning.
For the 26 weeks to July 2, like-for-like sales growth was 0.8% year-on-year. This comprised a 4.0% decline in the first quarter offset by growth of 5.4% in the second quarter.
Core like-for-like sales were down 5.5% in the half, while 'do-it-for-me' sales were up 30%.
The company said Local Trade sales performed very strongly, with its TradePro customer base increasing by 60,000 to 690,000 during the first half. However, it noted: "DIY sales remain below last year and although activity is ahead of pre Covid levels, there have been signs of the market softening in recent weeks."
Wickes added: "Whilst comparatives for Core sales ease in the second half, trading in recent weeks in DIY and a softer outlook for the DIFM market suggest customers are reacting to the uncertain macroeconomic backdrop as we enter the second half of our financial year."
It expects full-year adjusted pretax profit in a range of GBP72 million to GBP82 million, which would be below the GBP85.0 million achieved in 2021.
By Lucy Heming; [email protected]
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