The Works posts ‘disappointing’ online sales as losses widen

The Works reported higher sales over the festive period but saw shares tumble after “disappointing” online trade.

The stationery and books retailer saw shares slide as much as 20% in early trading after it said “online sales softened in the run up to Christmas”.

It told shareholders it believes the online drop over the 11 weeks to January 15 was “due to consumers losing confidence in retailers’ delivery promises in light of the widely reported postal strikes, and the potential for knock-on effects on other carriers”.

The Works did hail a broadly “strong” showing over the festive period as it was buoyed by increased high street footfall.

Total like-for-like sales increased by 5.7% over the 11-week period compared with a year earlier it said.

It added that 9.7% sales growth in shops offset a 14% decline in the group’s online operation.

The retailer said it was “encouraged” by the performance of its stores and expects this to strengthen further.

The update on latest trading came as the company said that total sales increased by 2.4% to £118.9 million over the half-year to October 30.

It also dropped to a £10.7 million pre-tax loss for the six-month period, widening from a £1 million loss over the same period in 2021.

Gavin Peck, chief executive of The Works, said: “Whilst the trading environment remains uncertain, we are encouraged by the strength of our performance during and after the key Christmas period and believe there is significant value to be created from delivering on our strategy in the medium-term.

“This is what we will be focusing on during the upcoming period, and we feel well placed to capitalise on the many attractive opportunities that lie ahead.”

Shares were down 20.1% at 34.5p in early trading.