Wickes Group suffers DIY dip after software issues
- The like-for-like DIFM (Do It For Me) fell by 4.4% in the third quarter
- However, core like-for-like sales grew 1.1% in the third quarter
Wickes Group experienced a decline in DIY sales in the third quarter, partly due to software problems.
The retailer saw like-for-like DIFM (Do It For Me) sales fall 4.4 percent in the three months to September 30, which investors said was ‘partly driven by a more normalized order book compared to the first half’ .
Wickes said it was also experiencing “some delays” in sales delivered “due to the transition to a new software solution” tasked with fulfilling customer orders.
It added: ‘Actions are being taken to resolve this issue, although there will be some impact on fourth quarter sales, which will now fall into fiscal 2024.’
The DIY retailer saw like-for-like DIFM (Do It For Me) sales fall 4.4 percent in the third quarter, which it said was “partly driven by a more normalized order book compared to the first half ‘.
The Watford-based group posted like-for-like sales growth of 1.1 percent for the third quarter, with volume growth for the first time since the second quarter of 2021.
TradePro sales showed double-digit improvement and Wickes said the customer base continued to grow strongly.
David Wood, CEO of Wickes, said: “Once again thanks to our great colleagues, we have delivered a solid performance in a challenging market, as we continue to deliver in line with our strategic growth drivers.
‘We have further gained market share in our core activities and achieved a return to volume growth.’
In July, the group unveiled a £25 million share buyback plan, thanks to improved DIY sales.
The home improvement retailer posted a 3 percent rise in like-for-like sales in the three months to the end of June, following a 1.8 percent decline in the first quarter, while like-for-like sales totaled 0.7 percent came out higher.
Wickes also cited improved confidence in its balance sheet in assessing that “excess cash currently exists” for shareholder payouts.
Wood added: “We have met strong demand from our Trade customers and are encouraged by the increased stability in the DIY sector.
‘As we continue to roll out our program of store openings and refurbishments, I am confident we have the right product offering and the most attractive locations, enabling us to deliver value for customers and shareholders.’
Wickes Shares have risen 1.06 percent to 132.90p in Friday morning trading.
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