Wickes reveals £25m share buyback as DIY sales improve

Wickes shares recovered on Tuesday after the group unveiled a £25m share buyback plan based on improved DIY sales.

The home improvement retailer reported a 3 percent increase 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 comparable store sales were up 0.7 percent overall.

Wickes also cited improved confidence in its balance sheet in its assessment that “currently there is excess cash” for shareholder payouts.

The group said: ‘We therefore intend to return excess cash to shareholders and are today announcing a £25m share buyback program to commence as soon as possible.’

Like-for-like core sales were up 2.3 percent during the reporting period, with categories such as decoration and construction doing well.

Click-and-collect sales at Watford-based Wickes increased by 5.6 percent, “due to the improvement in service,” the group said.

The group’s Do It For Me (DIFM) business experienced like-for-like sales growth of 5.3 percent, a slight decline quarter-on-quarter.

David Wood, chief executive of Wickes, said: ‘This has been an encouraging first half where we have again seen the benefits of our uniquely balanced business model working out well for customers.

Our performance is supported by further momentum in Trade as local traders continue to turn to Wickes to save them time and money, an improving trend in DIY and good performance in Do-It-For-Me.

“As we continue to make progress on our strategic growth drivers, we are confident in the Group’s outlook for both the rest of this year and the longer term.”

Wickes posted record sales last year as rising energy bills drove up orders for energy-saving products.