Wickes Group H1 Earnings Call Highlights

Key Points

• First-half performance improved: Revenue rose 2.1% and adjusted profit before tax increased 1.1% to £27.6 million, supported by retail volume growth and a 5.7% increase in design and installation revenue despite price deflation and cost inflation.
• Momentum strengthened in the third quarter: Retail like-for-like revenue growth accelerated to the mid-single digits in the first 11 weeks, with TradePro sales up 5% and membership reaching a record 671,000. Wickes remains on track to meet full-year profit expectations.
• Expansion and shareholder returns continue: Wickes returned £26 million to shareholders, raised its interim dividend 2.8% to 3.7 pence per share, and plans four to five new stores in the second half, followed by faster expansion from 2027 onward.

Wickes Group LON: WIX reported higher first-half revenue and adjusted profit before tax as volume growth in retail and continued momentum in its design and installation business offset a deflationary pricing environment and cost inflation.

Group revenue increased 2.1% in the first half of 2026, while adjusted profit before tax rose 1.1% to £27.6 million. The company said its retail business continued to attract more customers despite product-price deflation of between 2% and 3% during the period.

“This has been a strong period for the business,” David said during the results presentation, adding that Wickes had delivered sales and profit growth without broader market tailwinds. The company said it remained on track to meet market expectations for adjusted pre-tax profit this year after retail like-for-like revenue growth accelerated to the mid-single digits in the first 11 weeks of the third quarter.

Retail volumes and design activity support sales

Retail revenue increased 0.8% in the first half. Wickes said adverse weather contributed to a slight sales decline in the first quarter, followed by an improvement in the second quarter and a stronger start to the third quarter. The company said sales growth was volume-led, with customers shopping more frequently in stores and online.

TradePro, Wickes’ membership program for trade customers, recorded a 5% increase in sales and reached a record 671,000 active members. The company said retail market share increased year over year, supported by range reviews in categories including decorative, gardening and timber.

Digital service offerings also contributed to performance. Sales through Click & Collect and home delivery rose 7%, while Wickes said 86% of customers rated its 15-minute Click & Collect service as excellent or good. Its home-delivery service received an excellent-or-good rating from 90% of customers, according to the company.

Design and installation revenue rose 5.7% as Wickes worked through an order book built during 2025. The segment recorded its fifth consecutive quarter of positive like-for-like delivered sales growth. However, ordered sales were slightly lower, as an increase in the number of projects sold was offset by a shift toward lower-average-order-value projects, including bespoke bathrooms and lifestyle kitchens.

David said the company was seeing strong volume growth in its more affordable kitchen ranges, while its bathroom business was increasing both project volumes and average order values. Wickes expects the mix effect to result in a flatter profile for delivered sales growth in the second half.

Costs, investment and profit outlook

Chief Financial Officer Mark George said gross margin was broadly flat, moving by 0.1 percentage point, while operating costs increased 1.9%. Productivity initiatives helped offset some inflation, though they did not fully counter higher costs.

The company cited online appointment booking and efforts to improve “right first time” execution in design and installation as examples of initiatives that lowered costs and improved customer service. Wickes also saved about £1 million in business rates in the first half and expects about £2 million of savings in the second half.

Wickes increased investment in technology and its property development plan by around £5 million year over year. George said most technology development costs are being recognized through the profit-and-loss account, with approximately £20 million of project development costs expected in 2027, a small increase from 2026.

The company is testing a new till system in a limited number of stores and aims to extend the test across the estate by the end of the year. David said the system is expected to improve checkout efficiency, customer engagement and opportunities to recommend related products.

George said wage and employment-cost pressures had moderated following prior increases in national insurance and the National Living Wage. He added that Wickes expects more normal wage inflation but is monitoring energy costs, with about half of its energy costs hedged into 2027.

Wickes expects product-price inflation to turn positive in the fourth quarter. George said the company’s priority remains maintaining price leadership, with an objective to be 2% to 3% cheaper than key competitors on a comparable basket.

Cash returns and store expansion

The company ended the first half with £152 million of cash, although it noted that the working-capital benefit typically unwinds in the second half. Capital expenditure was £11 million in the first half, and Wickes expects roughly £14 million for the full year, with property investment weighted toward the second half.

During the period, Wickes returned £26 million to shareholders through £16 million of dividends and a £10 million share buyback. It also contributed a further £9 million to its employee benefit trust. The company raised its interim dividend by 2.8% to 3.7 pence per share from 3.6 pence.

Wickes is continuing to expand its store network, with an ambition to reach 300 stores. It refitted or refreshed eight locations in the first half, bringing 84% of the estate into its new format, and plans four further refreshes during the year. The company expects to open four to five stores in the second half, including a Saffron Walden location, followed by seven to nine new stores in 2027 and more than 10 annually from 2028.

George said future sites would average about 20,000 square feet, compared with an existing estate average of 27,000 square feet, while retaining the same overall store format. Wickes said smaller-footprint stores already represent roughly 10% of its estate and generate value comparable with the wider network.

The company also said its solar business has improved since March, helped by favorable weather, energy-cost concerns and changes to its customer proposition. Wickes plans to install solar at five additional stores this year and said it sees potential business-to-business opportunities with suppliers, landlords and other existing commercial relationships.

About Wickes Group (LON:WIX)

Wickes is one of the UK's best known home improvement retailers. Having opened our first store in 1972 we now have 228 stores across the UK, employing 7,400 colleagues and offering products ranging from kitchens and bathrooms, to paint, tools and timber. Wickes is a successful, growing, cash generative and profitable business, operating in the large and growing £27 billion UK Home Improvement market. Over the past few years Wickes has consistently outperformed the market, growing share and delivering a CAGR growth rate double that of the market. At Wickes, we have a clear purpose, which is to ‘help the nation feel house proud', and we do this by focusing on our three customer segments - Local Trade, Do-it-for-me and DIY retail.

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