Last checked at 8 Nov 2018 07:00
8 November 2018
TheWorks.co.uk plc
Half Year Trading Update
Good revenue and LFL sales growth deliver strong first half performance
TheWorks.co.uk plc ("The Works" or the "Company"), one of the UK's leading multi-channel specialist retailers of value gifts, arts, crafts, toys, books and stationery, announces today a trading update covering the 26-week period to 28 October 2018 (the "Period").
Revenue increased by 15% year-on-year, with LFL sales growth of 3.8%[1]. This performance was driven by growth in both stores and e-Commerce. It also reflected strong sales of 'Squishies' offsetting, in part, the sales from the 'Spinners' Mega Trend[2] in the prior year.
During the Period, The Works continued its successful store-roll out strategy, opening a net 32 new stores, taking the total number of stores trading to 479. The Company remains on track to meet its target of 50 net new store openings for the full-year.
With good revenue and LFL sales growth coupled with the successful execution of the Company's store-roll out strategy during the Period, the Company continues to trade in line with the Board's expectations for the full-year.
Kevin Keaney, Chief Executive Officer of The Works, commented:
"We're pleased with our performance in the first half of the year, with good sales growth in our existing stores and in e-Commerce, the continued execution of our store opening strategy and a successful IPO. As we enter the busy Christmas period, we remain focused on delivering for our customers through our unique multi-channel offering, which continues to buck the trend in retail."
Results for the first half of 2019 and an update on Christmas trading will be announced on 16 January 2019.
Enquiries:
TheWorks.co.uk plc Kevin Keaney, CEO Gavin Peck, CFO
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Teneo Blue Rubicon Ben Ullmann Shona Buchanan | +44 20 7420 3190 |
Notes to Editors:
TheWorks.co.uk plc is one of the UK's leading multi-channel specialist retailers of gifts, arts & crafts, stationery, toys and books - offering customers a differentiated proposition as a value alternative to full price specialist retailers. The Works sells its quality products at affordable prices across four specialist categories comprising Kids; Arts, Craft & Hobbies; Stationery; and Family Gifts, which are supplemented by both seasonal and regional offerings.
The Group operates a network of over 479 stores in the UK & Ireland. Stores can be found on high-streets, in retail parks, shopping centres, factory outlets and as concessions in various locations. The Works also has a significant and growing online presence that enables customers to shop any time of the day, with an extended range of products not available in stores. This multi-channel offering is one of the first of its kind in the value retail sector and includes a popular Click & Collect service, driving additional footfall and sales in store.
[1] LFL sales are defined as the year-on-year growth in gross sales from stores which have been opened for a full 63 weeks (but excluding sales from stores closed for all or part of the relevant period or prior year comparable period), and from its e-Commerce platform, calculated on a calendar week basis. No adjustments have been made for prior year Mega Trends2.
[2] Mega Trends are defined as any individual product, or collection of products, for which sales exceed 3 per cent. of weekly sales for a temporary period and for which management deem to be material in terms of impacting on the underlying performance of the Company.