Wickes Group PLC (LSE:WIX), the home improvement retailer, has reported sales growth in the third quarter although it warned costs will be impacted by rising energy prices.
The company said its delivered sales were up 12.2% in the three months to October 1, 2022, while core business sales remained flat at 0% like-for-like, meaning total sales were up 2.6%, compared to first-half sales which had been flat.
However, Wickes warned that “uncertainties remain regarding consumer confidence and operating cost inflation.” Specifically, it said costs will be impacted by rising energy prices once its contract ends in March next year.
If energy prices were to remain at the current cap, then full-year energy costs for financial year 2023 would be £7.5mln higher than in 2022, the company added.
It currently expects full-year adjusted profit before tax to be in the range £72mln to £82mln.
“While we are watchful of external headwinds, we are continuing to focus on our growth levers and on maintaining rigorous control of our costs,” said Wickes chief executive David Wood in the trading statement.
September trading picked up compared to July and August sales which were impacted by extreme heat, the company noted, with TradePro sales performing strongly and the group increasing its customer base per month by 10,000 to 720,000.
Delivered sales were ahead as the retailer works through its “elevated order book” although orders were down in the third quarter as customers take longer to commit to “big ticket projects.”