Wickes Group (WIX) H2 2025 earnings summary

Executive summary

• Achieved strong sales and profit growth for the year ending 27 December 2025, with both retail and design & installation segments outperforming the market and delivering record market share and continued volume growth.

• Adjusted profit before tax rose 14.4% year-over-year, exceeding expectations.

• Announced acceleration of store rollout, increasing the target from 250 to 300 stores across the UK, with five new stores and eleven refits completed in 2025.

• Maintained a balanced business model, delivering attractive shareholder returns through dividends and share buybacks, including a new £10m buyback.

• Continued investment in store network, digital enhancements, and customer experience initiatives.

Financial highlights

• Group sales grew 5.9% year-over-year to GBP 1.64 billion; retail up 6.5%, design & installation up 4.4%.

• Adjusted profit before tax increased 14.4% to GBP 49.9 million.

• Gross margin improved by 44 basis points, with gross profit up 7.2% year-over-year and margin at 37.0%.

• Operating profit rose 11% to £74.8m, despite a 6.7% increase in operating costs.

• Ended the year with GBP 92 million in cash, averaging GBP 153 million throughout the year.

Outlook and guidance

• Confident in market expectations for profit growth in 2026; anticipate mid-teens percentage growth in PBT, with consensus for 2026 adjusted PBT at £57.6m midpoint.

• CapEx to increase to GBP 40–45 million in 2026, reflecting accelerated investment in new stores and refits.

• Effective tax rate expected to return to slightly above the standard 25% after a one-off benefit in 2025.

• Dividend policy to target a cover range of 1.5x to 2.5x, with plans to increase dividend over time.

• New £10m share buyback announced for 2026; future buybacks dependent on store rollout pace.