Arts & Crafts Retailer Outperforms Non-Food Sector Despite Online Challenges

  • The Works maintains full-year guidance despite a 0.8% decline in like-for-like sales
  • Total revenues rise to £124.2m in H1 FY25
  • Pre-IFRS16 adjusted EBITDA loss narrowed to £2.8m from £8.5m a year ago
  • Adjusted losses before tax reduced from £10.4m to £6.5m
  • Store like-for-like sales grew 0.9% due to improved seasonal ranges and fiction book sales
  • Online sales fell 14.7% due to reduced promotional activity and fulfillment centre issues
  • CEO Gavin Peck remains optimistic about future growth plans

The Works, an arts and crafts retailer, has maintained its full-year guidance despite a 0.8% decline in like-for-like sales during the first half of FY25. Total revenues rose to £124.2m, with pre-IFRS16 adjusted EBITDA loss narrowing to £2.8m from £8.5m a year prior and adjusted losses before tax reducing from £10.4m to £6.5m. Store like-for-like sales grew 0.9% due to improved seasonal ranges and fiction book sales, while online sales fell 14.7% due to reduced promotional activity and fulfillment centre issues. CEO Gavin Peck remains optimistic about future growth plans, aiming to reach £375m in annual sales within five years through brand recognition, customer convenience improvements, and increased efficiency.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about The Works’ financial performance, including specific revenue and EBITDA figures, as well as the CEO’s comments on their strategies for growth and market conditions. It also includes relevant context such as online sales decline due to reduced promotional activity.
Noise Level: 3
Noise Justification: The article provides relevant information on The Works’ financial performance and its plans for growth, with a focus on cost reduction and improving profitability. It also includes quotes from the CEO. However, it lacks in-depth analysis or exploration of broader industry trends or consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses The Works’ financial performance, including revenue growth, cost savings, and adjusted EBITDA loss. It also mentions the company’s plans to grow sales and improve profitability in the future.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.

Reported publicly: www.retailsector.co.uk