Wickes' third-quarter sales climb as low-price strategy draws shoppers

Wickes Q3 Sales Climb 4% as Low Prices Attract Value-Conscious Shoppers

Wickes Reports Strong Third-Quarter Performance Amid Price Pressures

Oct 20 (Reuters) - British building materials supplier Wickes reported a 4% rise in third-quarter like-for-like sales on Tuesday as its low-price offerings attracted value-conscious customers, though it noted a modest rise in some prices.

Efforts to Limit Price Increases

• The retailer, which sells bathroom and kitchen fittings, has sought to limit price increases as customers grapple with higher mortgage rates, inflationary pressures and concerns over tax hikes

Revenue Growth and Segment Performance

Overall Revenue and Retail Segment

• Wickes' third-quarter revenue rose 4.5% to £439 million ($586.07 million), with revenue in its retail segment up 6%

TradePro and DIY Operations

• The company said its retail segment, which includes tradespeople-focused TradePro and DIY operations, has begun to see a mild price inflation after a sustained period of deflation

Competitive Pricing Strategy

• While rivals Travis Perkins and Howden Joinery have raised prices, Wickes has previously said it aims to be 2% to 3% cheaper than competitors

Design and Installation Business

• Sales in Wickes' Design and Installation business were broadly flat as customers pulled back on big-ticket purchases

Outlook and Forecast

• The company reiterated its forecast for about 10% growth in adjusted pretax profit in 2026

($1 = 0.7491 pounds)

(Reporting by Simone Lobo in Bengaluru; Editing by Sherry Jacob-Phillips)