Wickes has reported a mixed bag of results for the first half of the year, with consumers shying away from big-ticket purchases but showing interest in DIY retail goods. The London-listed company saw an overall group sales decline of 3.4 per cent in the 26 weeks leading up to June 29.
Second quarter revenue also dipped by 3.6 per cent year on year to £436.2m. Revenue from installations and home design fell by 17 per cent in the first half due to "continued soft consumer appetite for larger ticket purchases", according to the firm.
However, it seems Brits have been looking for budget-friendly home improvements: Wickes' lower-priced Lifestyle Kitchen saw an 18.8 per cent year on year increase in sales in the first half of the year. Like-for-like retail sales rose by 0.6 per cent.
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The company highlighted that retail growth was driven by volume, despite price deflation of around 3 per cent. David Wood, CEO of Wickes, commented: "Against a challenging trading backdrop, we have grown volume and taken further market share in Retail, with our TradePro scheme continuing to show strong momentum as local trade professionals turn to Wickes to save them time and money. We're seeing good demand for our lower-priced Wickes Lifestyle Kitchens, reflecting customers' desire for quality and value. We continue to invest in our growth levers and are particularly excited about the recent acquisition of Solar Fast."
Analysts at Panmure Liberum commented on Wickes' results, stating they were "probably better than we were expecting", but noted that "but there remains no positive catalyst for the shares", as reported by .
Last year, Wickes expanded into the home energy market with the acquisition of a solar installations company.
Analysts are hopeful that consumer confidence will boost "bigger ticket spending" in the second half of the year and maintained a 'Hold' recommendation on Wickes.
During the first half of the year, the company opened two new stores in Long Eaton and Durham, and refurbished three more.
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Wickes plans to manage costs through "savings in distribution and the cost benefits from technology investments in customer service".
The company has kept its full-year guidance unchanged.
This article has been updated to clarify that the 3.6 per cent decline in revenue is a year-on-year change.