// The Works posts higher sales over the festive period but shares tumble
// The share drop comes as the retailer records “disappointing” online sales
The Works has reported higher sales over the festive period but saw shares drop after a “disappointing” online performance.
The stationery and books retailer said shares tumbled as much as 20% in early trading after “online sales softened in the run up to Christmas”.
The drop in online sales for the 11 weeks to January 15 was “due to consumers losing confidence in retailers’ delivery promises in light of the widely reported postal strikes, and the potential for knock-on effects on other carriers”.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The Works said total like-for-like sales increased by 5.7% over the 11-week period compared with a year earlier.
It added that 9.7% sales growth in shops offset a 14% decline in the group’s online operation.
The retailer said it was “encouraged” by the performance of its stores and expects this to strengthen further.
The Works CEO, Gavin Peck said: “Whilst the trading environment remains uncertain, we are encouraged by the strength of our performance during and after the key Christmas period and believe there is significant value to be created from delivering on our strategy in the medium-term.
“This is what we will be focusing on during the upcoming period, and we feel well placed to capitalise on the many attractive opportunities that lie ahead.”
