Sales improve for The Works
Retail chain The Works enjoyed sales growth in the final quarter of its financial year.
For the 53 weeks to May 5 revenue grew 0.9 per cent to £282.6 million for the group which has stores across the West Midlands selling arts, crafts, toys, books and stationery.
It expects to report adjusted earnings before tax of approximately £6m in 2023-2024 and deliver £8.5m in the current financial year.
During the year The Works, which has its headquarters at Hams Hall Distribution Park, Birmingham, improved the overall quality and profitability of its store portfolio.
There were nine new store openings, 24 closures, five relocations and 21 refits.
At year end The Works was trading from 511 stores, of which over 96 per cent are profitable.
It has made changes at its distribution centre and in the store labour model, which are expected to drive significant efficiencies, and has also been negotiating rent savings with landlords, particularly for marginal and loss-making stores with leases up for renewal.
Chief executive Gavin Peck said: "We are pleased to have finished 2023-2024 in line with market expectations, which reflects action taken to reset our cost base and improve margins, supported by improving store sales in the final quarter. Significant changes implemented across the business make us well-placed to offset cost headwinds and we expect to return to profit growth in FY25. In a year of considerable change at The Works I am incredibly grateful to our colleagues for their ongoing dedication to our business and to our customers."
