No festive boost as The Works reports loss in challenging conditions
Retailer The Works has reported losses before tax as Christmas failed to bring a significant boost.
The business, headquartered in Coleshill, said it had seen tough cost headwinds 'due to inflation and increase in National Living and Minimum Wages'.
For the 26 weeks ending October 29, 2023 The Works reported adjusted loss before tax of £7.8m and Pre-IFRS 16 adjusted EBITDA loss of £8.5m.
The retailer, which sells books, arts and crafts, stationery, toys and games, did see 3.1% growth in total revenue to £122.6m and total like-for-like sales were up 1.6%.
In an update on current trading for the 11 weeks ended January 14, Chief Executive Gavin Peck, said: "Market conditions have been persistently challenging, putting pressure on our sales and profit performance in the first half and throughout the festive period.
"It is clear that many families celebrated Christmas on tighter budgets this year, and whilst we offered excellent value, we were not immune to this reduced spend.
"I am proud of the way that our colleagues have rallied together to deliver for customers during these challenging times.
"We have started the new calendar year on an improved sales trajectory, with a strengthened leadership team to drive forward our strategy and exciting Easter and summer toy ranges due to land later this year. However, we are also mindful of external challenges, including recent supply chain disruption in the Red Sea.
"Our focus for the remainder of the year will be on cost reduction, rebuilding margin and profitability, and conserving cash. It is necessary to take this action now to stabilise the profitability of the business during this challenging period, however we remain confident that our "Better, not just Bigger" strategy is the right direction for the business and will enable a return to sustainable growth in the long term."
The company has stores across the West Midlands including Merry Hill, West Bromwich, Walsall, Brownhills and Lichfield.
