// The works bounces back from the lockdown slump with total sales rising 12.7% on a two-year basis
// Despite this, it warned that the rate of growth during the final months of its financial year had slowed on the back of the cost of living squeeze
The Works has enjoyed a jump in sales since 2020 but warned it has begun to feel the effects of a slowdown in consumer spending in recent months.
The business has bounced back from the lockdown slump with total sales increasing by 12.7 % on a two-year basis and like-for like sales rising by 10.4%.
The Birmingham retailer said it had been boosted by a strong first half and record Christmas trading and said that branded toys and games such as Peppa Pig, Paw Patrol and Cocomelon have also continued to perform strongly.
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The Works chief executive Gavin Peck said: “We are pleased to report strong trading in FY22, consistently delivering sales well ahead of pre-Covid levels and another record Christmas. This performance, and the resilience that our business has shown against a challenging external backdrop, demonstrates the positive effect of our “better, not just bigger” strategy, which still has a lot more upside to deliver,”
“We are delighted that our improved trading performance will enable us to recommend reinstating the dividend and remain optimistic that we can deliver further sales growth in the year ahead.”
Despite warning that the rate of growth during the final months of its financial year had slowed on the back of the cost of living squeeze, the company said that operational improvements made throughout the year have helped offset these headwinds.
The business, which has 525 stores across the UK, also said it has profited from the “BookTok” phenomenon which brought together book lovers on social media platform TikTok.
Peck added: “By capitalising on this trend, we have been able to draw attention to previously best-selling books and prompt renewed customer interest in them. Branded toys and games have also continued to perform strongly, through reinforcements to our ranges of, for example, Peppa Pig, Paw Patrol and Cocomelon.”
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