Wickes Group (WIX) H1 2024 earnings summary

Executive summary

• Achieved resilient H1 2024 performance with record retail market share gains, strong TradePro and Lifestyle Kitchens growth, and improved Q3 trading trends despite challenging market conditions.

• TradePro scheme sales rose 14% with active members up 18%, and Lifestyle Kitchens sales increased 19%.

• Acquired 51% of Solar Fast for £5.1m, launching Wickes Solar in 50 stores and online, entering the home energy solutions market.

• Opened two new stores, completed three refits, and maintained interim dividend at 3.6p; net cash position of £152m after share buybacks and acquisition outflows.

• Entered FTSE4Good Index, reflecting progress in responsible business strategy and ESG initiatives.

Financial highlights

• H1 2024 revenue was £799.9m, down 3.4% year-over-year; adjusted profit before tax was £23.4m, down 24.8% year-over-year.

• Gross margin increased by 24bps to 36.2% due to careful pricing and promotion management.

• Retail LFL sales grew 0.6%, while Design & Installation LFL sales declined 18.3%.

• Ended H1 with £152m cash; £29m returned to shareholders via dividends and buybacks.

• Adjusted basic EPS was 7.1p (down 24.5%); statutory basic EPS 6.9p (up 9.5%).

Outlook and guidance

• Q3 trading shows improved trends in both retail and design & installation; management expects to outperform the market.

• FY24 adjusted PBT outlook remains in line with consensus, supported by productivity initiatives and cost mitigation.

• Capex guidance for 2024 is c.£30m; adjusted tax rate 25–26%; net interest costs £20–25m.

• FY dividend expected to be maintained at 10.6–10.9p; share buyback to complete by end September 2024.