TheWorks.co.uk PLC (LSE:WRKS) said it delivered a “resilient trading performance against the backdrop of an increasingly challenging consumer environment” in the first half.
Full-year expectations remain unchanged, although the arts and crafts retailer said it is cautious of factors that may impact consumer spending, including higher inflation and interest rates heading into the key Christmas period.
"Although it is very difficult to predict what Christmas will look like this year, we believe that the great products and fantastic value we offer will be more important than ever, with families still looking to celebrate Christmas but in a more affordable way,” said chief executive Gavin Peck.
Total sales increased by 2.1% in the six months to 30 October 2022, with like-for-like sales rising 0.6%, and while online sales declined 16.9%, this was still 50% above pre-COVID levels, it said.
Store like-for-like sales rose by 3.5% in the period.
Sales slowed during May following a cyberattack in March, which forced the group to close some of its stores, although performance rebounded from June onwards, according to a trading update.
Store sales growth softened in the six weeks since its previous update, which was attributed to “losing a full trading day for the additional bank holiday, as well as the comparatives in September and October 2021, when we believe Christmas shopping was brought forward”.
Online sales growth continued to track behind stores in the six-week period, but the rate of decline has slowed, it noted.