- Q3 Revenue Decline
- Software Issues Impact Sales
- Growth in TradePro Segment
The third quarter witnessed a decline in the revenue of Wickes Group’s home installation division, partially due to software issues.
Sales Decline and Order Book Normalization
Like-for-like DIFM (Do It For Me) sales fell 4.4% in the three months ended September 30. The company informed investors that this decline was “partially driven by a more normalised order book compared to the first half.”
Delays in Sales Due to New Software Implementation
Wickes also claimed “some delays” in delivered sales “due to the implementation of a new order fulfilment software solution”.
The statement further mentioned, “Efforts are being made to resolve this matter. However, there will be a delay in the delivery of products in the fourth quarter, which will now occur in FY2024.”
Prospects and Market Expansion
The Watford-based organisation reported volume growth of one percent and like-for-like sales growth of 1.1% for the third quarter. The first time since the second quarter of 2021 that volume increased.
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Growth and Strategy
TradePro sales increased by double digits, and Wickes reported that its clientele continued to expand at a rapid rate.
David Wood, chief executive officer of Wickes, remarked, “Once more, we have delivered a solid performance in a challenging market by collaborating with our extraordinary staff as we continue to execute in accordance with our strategic growth drivers.”
We have increased our market share and achieved a return to volume growth in our core business.
The organization unveiled a £25 million share repurchase strategy in July, citing increased DIY sales as the reason.
In the three months leading up to June, the home improvement retailer reported a 3% increase in like-for-like sales, following a 1.8 percent decline in the initial quarter. Comparable sales increased by a mere 0.7 percent on an overall basis.
In addition to increased confidence in its balance sheet, Wickes stated that “currently, excess cash exists” for shareholder payments.
Wood further stated, “We have satisfied robust demand from our trade clients and have been inspired by the increased stability in do-it-yourself.”
With the ongoing implementation of our store openings and refits programme, I am certain that we have secured the most desirable locations and the most suitable product offerings, which will allow us to provide value to our shareholders and customers.
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