The Works sales remain strong despite supply chain woes

The Works has remained optimistic about its full-year results despite warning of ongoing supply chain issues and higher costs in the run-up to Christmas. 

It comes as the group welcomed stronger than expected trading in the first half of the year, reporting a two-year LFL sales increase of 14.5% and total two-year sales growth of 17.9%.

In the half-year ended 31 October 2021, online sales also continued to be approximately double those in the comparable FY20 period.

While early indications of Christmas sales are positive, the group warned it could still be affected by ongoing shortages of ocean freight and UK haulage capacity, and particularly higher freight costs. 

To prepare for this, it made the “conscious decision”  to secure its supply chain ahead of the festive period, and now “expects to have the stock we need in order to achieve our sales plans, albeit having incurred significant additional costs”.

Following the stronger than expected trading during H1 FY22 and stock availability strategy in the lead up to Christmas, the group now anticipates that the full-year result for FY22 will be in line with its original expectations.

Gavin Peck, CEO of The Works, said: “It’s clear from these results that our products resonated extremely well with customers during the pandemic, helping them to read, learn, play and craft through lockdown.  

“Our strong sales in recent months demonstrate that demand has been maintained and customers continue to value our offer.  It’s particularly pleasing to see that whilst our online sales continue to run at almost double their pre-pandemic levels, store sales are also growing.”

He added: “Looking ahead, we have a fantastic range of products for our customers this Christmas with initial demand for them already very strong.  

“We are cautiously optimistic about prospects for our peak sales season and our ability to trade through the ongoing supply chain challenges faced by the majority of our sector.”