Wickes reiterates profit guidance despite Q3 sales slump

(Sharecast News) - DIY and building supplies retailer Wickes said it remains on track to meet full-year targets despite a slump in sales in the third quarter, as it warned some installation sales would be pushed into next year.

Sales in the three months to 30 September were down 0.2%, reversing after 3% growth in the second quarter, as 1.1% growth in core sales was offset by a 4.4% drop in Do-It-For-Me (DIFM) sales.

Wickes said the DIFM business, which includes installation services for kitchens, bathrooms and flooring, saw a "more normalised order book" compared to 6.2% and 5.3% growth in the first and second quarters.

DIFM also saw delays to delivered sales after moving to a new software solution fulfilling customer orders. "Actions are being taken to enable this to be resolved, although there will be some impact on Q4 delivered sales which will now fall into FY2024," the company said.

Meanwhile, DIFM orders were down with customers taking longer to commit to big ticket purchases.

Nevertheless, the company said it "remain[s] comfortable" with current market consensus for full-year adjusted pre-tax profit of £45.3m to £49m.