Wickes has posted an almost 25% drop in pre-tax profit for the six months ending 29 June 2024.
The home improvement retailer reported an adjusted pre-tax profit of £23.4m, down from £31.1m during the same period last year.
Despite this drop, statutory profit before tax increased by 8.5% to £22.9m.
First-half sales dipped by 3.4% year on year to £799.9m, while retail revenue was up 1% despite design and installation sales falling 17%.
Wickes attributed the decline to a slowdown in the broader home improvement market.
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Despite the sales and profit dip, the retailer hailed record market share gains in its retail arm during the first half and saw “particular gains” across categories including decor, garden, tiles and flooring.
Its membership scheme for tradesmen, TradePro, experienced “strong” sales growth during the period, rising 14%, and the number of members hit one million for the first time this month.
The market for big ticket purchases remained “challenging” as Wickes CEO David Wood said the business was not immune from the tough market conditions.
The retailer’s profit outlook remains unchanged as it said trading during the third quarter “has seen an improved trend”.
Wood said: “This first half performance is testament to the hard work of all our colleagues and demonstrates the strength of our balanced business model.
“We achieved further volume growth and record market share gains in retail, with TradePro remaining a key differentiator. The market for design and installation remained tough during the half and Wickes was not immune; nonetheless, we have seen a positive response to our value-led Wickes Lifestyle Kitchen range, which is growing strongly.
“We are on track for the remainder of the year and have been encouraged by trading at the start of the second half. Looking further ahead, our outstanding customer offer, proven growth levers and focus on cost control leave us well-placed within a home improvement market which continues to offer significant opportunities.”
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