Retailer reports revenue growth of 0.9% to £282.6m in FY24 against a challenging backdrop characterised by cost of living pressures and softened consumer demand.
Store sales, which represent about 90% of total sales, continued to drive growth, increasing by 0.6% on a like for like (LFL) basis. Online LFL sales declined by 12.4%, resulting in an overall LFL sales decline of 0.9%.
The Works said “decisive action was taken to grow product margins, reset the cost base and scale back non-essential investments, with the aim of improving profitability. This included relocating our online fulfilment centre and changing ways of working in our retail distribution centre, negotiating more favourable terms with suppliers and landlords, transferring from the main market to AIM and ending our customer loyalty scheme to focus instead on providing customers with everyday low prices.”
The company said it was “well-positioned heading into our peak Christmas trading period” having addressed the capacity issues faced in the distribution centre last year.
Gavin Peck, chief executive officer of The Works, commented: “Against a persistently challenging consumer backdrop and tough Christmas trading, we were pleased to end FY24 in line with market expectations. This was a direct result of the continued dedication and strong response of colleagues, the decisive action taken to improve product margins, reduce costs and scale back non-essential investments, supported by improved sales in the final quarter.
“Although consumer confidence remains subdued and we continue to face tough cost headwinds, the cost and operational action we have taken and the trajectory of recent trading means we are well positioned to offset these and return to profit growth in FY25. Operationally we are in a much stronger position this year as we head into the upcoming peak Christmas trading period and we look forward to supporting customers to have a Christmas well spent courtesy of The Works.”
