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Wickes sees a depressed first quarter, as sales drop 6% LfL

Published: 17 May 2013
The four months to April 30 brought sales crashing 6.1% like-for-like at Wickes, with the early Easter and chilly start to Spring heavily impacting revenue.
Wickes sees a depressed first quarter, as sales drop 6% LfL
Total sales dropped by 5% at the retailer according to a financial report released by parent company Travis Perkins. But the business has already taken steps to recover lost sales at the retailer, with the introduction of new branded ranges such as Dulux throughout Wickes branches.

The group said that although it was still early days, these changes had been "well received", adding: "we have maintained our focus on cost control including lowering divisional overheads."

Sales picked up during April and May at Travis Perkins as a whole, which also owns retailer Tile Giant, due to warmer weather according to chief executive Geoff Cooper. But, the group added that the bad start to the year is 'unlikely' to be recovered by group performance during the following three quarters. It is, however, still hoping to 'meet market expectations' in terms of full year earnings per share due to focusing on reducing margins and costs.

Mr Cooper said: "Latent demand and better weather has contributed to the encouraging trend at the start of the second quarter, with sales recovering in April and early May as activity has picked up.

"Leading indicators have strengthened, which continues to suggest there should be an improvement in volumes in the second half of the year as we anticipated. Overall, the group continues to be in good shape and poised to respond to any meaningful signs of market recovery."

Overall, Travis Perkins group like-for-likes fell 1.8% over the quarter, with a total sales drop of 1.2%.

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