Wickes Group (LSE:WIX) PLC raised profit guidance for the full year, citing continued growth in its 'Do It For Me' offering.
The home improvement retailer said full-year adjusted profit before tax will be no less than £83mln.
The current consensus forecast for Wickes’s full-year profit before tax is £74.6mln. Previously, Wickes indicated profits would be towards the upper end of analysts’ forecasts, which at the time was £67mln-£75mln.
The retailer added it has traded well in the fourth quarter, with sales in line with expectations.
Delivered sales in Do It For Me (DIFM) are strengthening as the retailer works through an increased order pipeline.
The DIY products specialist said it continues to expect a higher carryover order book in DIFM, supported by continued strong sales that will benefit the first half of 2022.
As expected, sales in the core business are lower year-on-year against tough comparatives, but are materially ahead on a two-year basis, Wickes said, driven by a further strong performance from local trade underpinned by its digital TradePro loyalty scheme.
The recent changes to UK Government Coronavirus (COVID-19)-related guidance are unlikely to have a material impact on performance over the balance of the year, management said, but added the trading environment continues to remain uncertain.
"This has been a period of further progress for Wickes, where our focus on value, stock availability and exceptional service have underpinned our customer offer," said David Wood, the chief executive officer of Wickes. "Our forward planning and early strategic decisions have resulted in an improved profit performance, and we continue to navigate inflationary pressures and raw material constraints well.
“Clearly, this remains a time of uncertainty; however, our differentiated business model leaves us well-placed to continue to outperform within a large and growing home improvement market,” Wood said.