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TheWorks.co.uk PLC on Thursday retained full-year guidance amid a mixed trading picture and a challenging consumer environment and struggles in its online business. The Birmingham, England-based seller of arts and crafts, stationery, toys, and books said sales fell 0.3% to £123.8 million in the 26 weeks ended November 2 from £124.2 million the year prior, but rose 0.3% on a like-for-like basis. Store LFLs increased by 4%, reflecting the ongoing delivery of the ’Elevating The Works’ strategy. ‘Although the consumer environment has remained challenging, more customer-focussed marketing campaigns and new ranges resonated well with our customers,’ the firm explained. Two new stores were opened in the period and the firm said it is on track for a net five new store openings in the financial year as a whole. Online sales, which represent less than 10% of sales, declined by 36%, reflecting the impact of ‘operational challenges experienced following the transition to a new third-party fulfilment partner.’ The firm said action has been taken to help mitigate the impact, however increased costs are expected to continue through the peak trading period. More positively, TheWorks.co.uk said sustained product margin growth and ongoing cost savings have helped to more than offset cost headwinds in the half-year with progress made against the £2 million cost reduction programme. As a result, the company said it remains on track to deliver full-year profit in line with market expectations of pre-IFRS 16 adjusted earnings before interest, tax, depreciation and amortisation of £11.0 million. This would be up from £9.5 million in the 52 weeks ended May 4. Chief Executive Officer Gavin Peck said he was ‘pleased’ with the progress made in the first half, notwithstanding the ‘challenging retail backdrop and ongoing online capacity constraints.’ Shares in the company traded 11% lower at 36.40 each in London on Thursday. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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