Sunday 24 June 2018

Travis Perkins sales up amid uncertain market

The group reported a 4.1% rise in like for like sales in the period, with total sales increasing 3.5%.

Travis Perkins stock
Travis Perkins stock

By Ravender Sembhy, Press Association City Editor

Builders’ merchant and Wickes DIY chain owner Travis Perkins has said it jacked up prices to offset soaring costs from the Brexit-hit pound in the third quarter, which helped it boost sales.

The group reported a 4.1% rise in like for like sales in the period, with total sales increasing 3.5%.

Travis put its comparable revenue growth down to “inflation driven price increases” after the pound’s slump following the Brexit vote last year saw costs rocket.

The firm said its shop prices rose 3.9% over the quarter as a jump in commodity prices, such as timber and copper, also saw costs rise.

Chief executive John Carter said: “We have delivered a good like-for-like sales performance across the Group in the third quarter against a challenging market backdrop of input cost inflation and market volatility.

“Volumes were broadly flat with inflation driven price increases the main component of our like-for-like growth.”

Travis described trading conditions as “mixed”, and flagged that consumer discretionary spending is under pressure from rising inflation and “on-going uncertainty in the UK economy”.

The group’s merchant divisions delivered like-for-like sales growth of 4.7% and total sales growth of 2.9%.

However, comparable sales growth in its consumer division slowed in the third quarter to 2.4%, reflecting an “increasingly difficult market environment”.

Travis said that a turnaround plan for its struggling plumbing and heating arm is on track, with 33 branches closed in the quarter and an overhaul of ranges, pricing and online offering under way.

Press Association

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