Wickes announces £25m share buyback amidst encouraging DIY sales growth

Wickes shares rallied on Tuesday following improved DIY sales, leading the company to announce a £25 million share buyback plan.

The home improvement retailer saw a 3% rise in like-for-like sales in Q2, rebounding from a 1.8% decline in Q1. Overall, comparable sales increased by 0.7%.

The group announced its intention on a share buyback plan of £25 million after an improvement in second quarter trading

Wickes also expressed confidence in its balance sheet, stating that there is currently surplus cash available for shareholder payouts.

The group stated, “We plan therefore to start returning excess cash to shareholders and today announce a share buyback programme of £25 million, which will commence as soon as practically possible.”

Core like-for-like sales increased by 2.3% during the reporting period, driven by strong performance in categories such as decorative and construction.

Wickes’ click and collect sales saw a growth of 5.6%, reflecting the improved service offered by the company.

The group’s Do It For Me (DIFM) business experienced a quarter-on-quarter decline in like-for-like sales, with a growth of 5.3%.

David Wood, CEO of Wickes, commented, “This has been an encouraging first half where we have once again witnessed the benefits of our uniquely balanced business model delivering value for our customers. Our performance has been driven by the momentum in Trade, an improving trend in DIY, and a strong performance in Do-It-For-Me. We are confident in the Group’s prospects for both the remainder of this year and the long term as we continue to make progress across our strategic growth drivers.”

Wickes achieved record turnover last year, primarily fueled by increased orders for energy-saving products due to rising energy bills.