Wickes Group Share Price Rose 3.6% on Q3 Results, FY Guidance

The Wickes Group PLC (LON: WIX) share price rose 3.58% after releasing a trading update for the 13 weeks to 30 September 2023. The company noted that its balanced business model was still delivering and on track to meet its full-year expectations.

The company’s performance reflects the steady progress and resilience within the business. The firm also reaffirmed its guidance for the full-year adjusted PBT (Profit Before Tax). The third quarter witnessed LFL sales broadly in line with last year, indicating stability in the business's performance.

Core LFL sales showed a modest growth of 1.1%, signifying a positive upturn, and notably, it marked the first time volume growth was observed since the second quarter of 2021.

Wickes Group’s Delivered-In-Full-Merchandise (DIFM) sales experienced a decline of -4.4% during Q3. This drop was influenced in part by a more normalised order book compared to the first half of the year. 

Moreover, delays in delivered sales were experienced due to implementing a new software solution for handling customer orders. Wickes continues to see strong growth in its TradePro sales, with its customer base expanding robustly. However, DIY sales remained moderately down compared to the previous year.

Wickes noted an improvement in its core market share during Q3, with particularly robust performances in the decorative, tiling, and insulation segments. This underscores the company's ability to compete in various market sectors effectively.

The period saw selling price inflation remaining broadly flat, a trend expected to continue for the rest of the year and into 2024. Wickes maintains a strong relative price position in the market, contributing to its competitive advantage.

Wickes maintains its guidance for the entire year and remains comfortable with the current market consensus for FY2023 adjusted PBT, estimated to be in the range of £45.3-£49.0 million on a post-IAS38 basis.

David Wood, Wickes’ Chief Executive Officer, commented: “Once again, thanks to our amazing colleagues, we have delivered a solid performance in a challenging market as we continue to deliver against our strategic growth drivers. In our Core business, we have gained further market share and achieved a return to volume growth. We have fulfilled strong demand from our Trade customers and have been encouraged by greater stability in DIY.”

Wickes Group share price. 

The Wickes Group share price rose 3.58% to trade at 135.9p from Thursday’s closing price of 131.2p.