Investors hammered home a vote of confidence in Wickes Group PLC (LSE:WIX) on Tuesday, sending the shares up 9% after a strong trading update showed the home improvement retailer is firmly back in growth mode.
According to Shore Capital, the company’s first-quarter figures show a business “continuing its positive trading momentum” and comfortably on track to meet profit forecasts for the year.
Sales rose 6.9% year-on-year, or 5.5% on a like-for-like basis, with warmer spring weather playing a helpful role.
Retail sales were the standout, jumping 9.6%, as DIY customers returned in force. The Design & Installation division, covering fitted kitchens and bathrooms, was still a drag, down 0.4%.
But ShoreCap noted a second straight quarter of order growth, suggesting this business may turn a corner in the coming months.
Wickes’ growing strength in the trade segment is another bright spot. Trade sales rose 13%, with the company’s TradePro membership, offering discounts to professional builders and handypeople, expanding 14% to 605,000 members.
These customers are especially valuable, spending roughly ten times more than a typical DIY shopper each year. For a retailer operating in a sector often swayed by weather and economic mood swings, that kind of repeat business provides welcome stability.
Management reiterated its confidence in full-year profit expectations, guiding to a pre-tax profit of around £48 million. ShoreCap is forecasting £46.7 million and notes that the consensus range of £45.6 million to £51 million still looks achievable based on current momentum.
On valuation, Wickes continues to look undemanding. The stock trades at just 10.4 times forecast earnings for 2026, with an enterprise value to EBITDA ratio of 5.7 times. That leaves room for upside if the company continues delivering on revenue and margin growth.
For investors looking for exposure to the home improvement market without paying up for it, ShoreCap’s 'buy' rating looks grounded in more than just optimism.
Wickes may not be flashy, but its blend of loyal trade customers, recovering installation business and solid cost control is starting to shine through.
The stock rose 18.3p to 215.5p.