The Works reports confidence in ‘beat the boredom’ offering as sales rise

The Works says it is confident that its offer will continue to prove popular with consumers during an extended period of social distancing as it announces a full-year trading update.

Sales to the 26 April increased by 3.5% year-on-year, while the company opened a net 37 new stores, taking the total number of stores in the estate to 534 – in line with expectations.

The firm says it saw a significant increase in sales, both in stores and online, prior to store closures, with overall sales up 81% in the week to Sunday, 22 March – the week before lockdown. The works says this reflected strong customer demand for products to support childrens’ ongoing education, mindfulness materials to support mental health and products to “beat the boredom” during this period of social distancing.

Gavin Peck, chief executive, has taken a voluntary 33% pay reduction, while Catherine Glickman and Harry Morley (non-executive directors) have waived 33% of their fees and the chairman, Dean Hoyle, has waived 100% of his fees. These reductions will be in effect for three months. The operational directors have also taken a voluntary 20% pay reduction for the period of store closures.

A statement from the firm said: “The Board is confident that The Works’ proposition will continue to resonate well with customers during this period of extended social distancing. Whilst it is not possible to provide specific guidance for the financial year ahead, the Board has a cautious outlook given the highly uncertain trading conditions and the potential impact of social distancing in stores. This caution is reflected in its modelling and the Board believes that, based on the scenarios considered, it currently has appropriate liquidity in place.”