Wickes Group (WIX) reported H1 2026 results that beat expectations on volume, with revenue growing 2.1% year-over-year to £865.3 million as deflation in product pricing was largely offset by strong retail volume growth.
Total revenue rose to £865.3 million, up from the prior-year period, with retail revenue climbing 0.8% to £639.8 million and design and installation services growing 5.7% to £225.5 million. Adjusted profit before tax came in at £27.6 million, up 1.1% from £27.3 million in H1 2025, with the adjusted PBT margin holding steady at 3.2%.
Gross margin dipped 0.1 percentage points to 36.7%. Operating costs rose 1.9% to £277.0 million but improved slightly as a share of sales to 32.0%, down 0.1 percentage points.
Product prices fell 2-3% in the first half, but retail volume and mix grew 2.1%, more than compensating for the deflationary headwind. The company's retail market share index — measured against a 2019 baseline of 100 — reached 120 by June, reflecting a 20% increase over the base period.
Like-for-like sales progression was encouraging. After retail like-for-like sales declined 1.7% in Q1, they turned positive at 0.7% in Q2. In its Q3 trading update, Wickes said retail like-for-like revenue growth stepped further into the mid-single-digit range.
The group raised its store network ambition to 300 locations from 250, up from previous targets. Eight refits and refreshes were completed in H1, bringing approximately 84% of the estate to the current format. Standard stores average 27,000 square feet, while smaller-footprint formats of 15,000-20,000 square feet have performed well.
Looking ahead, the company plans 4-5 new store openings and 12 refits or refreshes for H2 2026. In 2027, that rises to 7-9 new openings and 15-20 refits. From 2028 onwards, Wickes targets 10 or more annual store openings and 20 or more refits and refreshes each year.
Capital expenditure is expected to total approximately £40 million in FY2026, excluding technology projects expensed through the P&L, with £11.2 million spent in the first half. Store capex should reach about £20 million in 2026, rising to £25-35 million in 2027 and £35-45 million from 2028 onward.
Cash balances increased to £151.6 million at H1 2026 from £91.7 million at FY2025. The group returned £26 million to shareholders, comprising £16.3 million in dividends and £10 million in share buybacks, while maintaining net investment of £9.2 million in Employee Benefit Trust share purchases.
The interim dividend was raised 2.8% to 3.7 pence per share, with management targeting a dividend coverage ratio between 1.5x and 2.5x.
Consensus for full-year 2026 adjusted PBT stands at £54.6 million (range £52.8 million-£56.0 million). Net interest costs are expected at £25-27 million, with an effective tax rate of 24-26%.
On the broader market opportunity, Wickes cited a £35 billion total addressable market — £19 billion in home improvement products, £11 billion in kitchens and bathrooms (£7 billion in products and £4 billion in installation services), and £5 billion in home energy solutions (£2 billion in products and £3 billion in installation services). The company holds roughly 5% share of the overall market.
Wickes' TradePro loyalty programme reported 671,000 active members, with TradePro sales growing 5% in the first half, while DIY sales remained broadly flat.
