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TheWorks.co.uk climbs as ‘Squishies’ sales help boost interim revenues by 15%

In a half year trading update, the company said like-for-like (LFL) sales had risen by 3.8% over the period, driven by growth in both its stores and e-Commerce divisions
Squishy toy
Sales of the squashable toys also helped offset the 'Spinners' trend from last year

Retailer TheWorks.co.uk PLC (LON:WRKS) saw its shares rise in late-morning trading Thursday after its half-year revenues surged 15% on the back of strong sales of ‘Squishies’.

In a half year trading update, the company said like-for-like (LFL) sales had risen by 3.8% over the period, driven by growth in both its stores and e-commerce divisions.

READ: TheWorks.co.uk begins trading in London with market value of £100mln

Squishies sales had also helped to partially offset sales from the trend in ‘Spinners’ in the prior year.

The firm added that it had opened a net of 32 new stores, taking its total number to 479 and on track to meet its target of 50 net new stores opening for the full year.

Trading for the full year was also expected to be in line with expectations.

Kevin Keaney, chief executive of The Works, said the group would remain focused on delivery through its “unique multi-channel offering, which continues to buck the trend in retail" as it entered the busy Christmas period.

Karla Rendle, senior retail analyst at GlobalData, said that Keaney’s claims of bucking the trend were questionable, given the fact that “other discounters across the board including Home Bargains, Wilkos and B&M are also benefiting from shoppers trading down”.

She added that the company looked set to capitalise on a desire by shoppers to “engage in ‘mindful’ and creative activities” and should focus on “strong occasions campaigns as well as promoting the benefits of craft activities for health”.

The trading update is the firm’s first since it floated in July, raising £65.2mln in its initial public offering (IPO).

The Works will announce its first-half results and an update on Christmas trading on 16 January 2019.

Shares were up 8.1% at 140p.

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TheWorks.co.uk PLC Timeline

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