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 (D&I) segments outperforming the market and delivering record market share through volume-driven gains.

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

• Accelerated investment in growth, including five new stores and eleven refits completed in 2025, with 83% of the estate now in new format.

• Announced acceleration of store rollout, increasing the target from 250 to 300 stores across the UK, leveraging smaller footprint formats.

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

Financial highlights

• Group sales grew 5.9% year-over-year to GBP 1.64 billion; retail up 6.5%, D&I 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-on-year and margin reaching 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 PBT growth in 2026, anticipating mid-teens percentage growth and a consensus adjusted PBT of £57.6m.

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

• Effective tax rate to normalize slightly above 25% after a one-off benefit in 2025.

• Dividend expected to increase over time, with cover targeted at 1.5x–2.5x; new £10m share buyback announced for 2026.

• Share buybacks to pause as focus shifts to growth investment, but future buybacks depend on store rollout pace.