Wickes Group PLC (LSE:WIX) is struggling to retain customers in the high-value Design & Installation segment, which is the home improvement chain’s bespoke kitchen, bathroom and home office installation offering.
Revenues were gutted by 17% in this segment in the first half of Wickes's financial year, which offset its 1% revenue growth in the core Retail offering.
Wicked said there was “continued soft consumer appetite for larger ticket purchases” in the period, coupled with a strong comparative performance in the first half of 2023.
Group-wide revenues fell by 3.4% in the six months ending 29 June, though Wickes said it has maintained forward profit guidance (a precise figure was not given).
“Whilst the trading environment remains uncertain, given the resilient first half in Retail and our continued focus on costs, the overall outlook for adjusted profit before tax for 2024 remains unchanged,” the company stated.
Chief executive David Wood added: "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.”
Wickes intends to incorporate sales from its recent Solar Fast acquisition into Design & Installation once its 51% stake is fully consolidated.