Travis Perkins sales recover amid post-lockdown DIY boom
Travis Perkins (LON:TPK) sales were boosted by a DIY boom after consumers spent more time at home during lockdown.
The company announced this morning that like-for-like sales jumped 3.9 per cent in the third quarter, driven by an increase in home improvement projects.
However Travis Perkins, which owns the Toolstation and Wickes brands, said there had been a “lag in recovery of larger consumer activity” such as new house building and commercial construction.
Total group sales declined 3.4 per cent, reflecting branch closures since June.
Travis Perkins said it expects its earnings before interest, tax and amortization to be in the upper half of the current range of analysts’ expectations.
However it warned that, while its markets have shown an “encouraging recovery” after lockdown, “significant uncertainty” remains due to the pandemic and the ongoing Brexit negotiations.
Travis Perkins chief executive Nick Roberts said: “We have reported a positive overall like-for-like sales performance in the quarter as our markets have continued to recover following the impact of the national lockdown earlier this year.
“This has been driven by a strong recovery in demand across domestic RMI markets, benefitting the Travis Perkins, City Plumbing, Wickes and Toolstation businesses who serve these markets.
“Currently this domestic RMI trend remains strong.
“Whilst local trade activity has recovered well, our trade businesses continue to experience a lag in recovery from larger housebuilding and construction projects.
“However, there are signs of increasing workflow across these sectors as underlying demand strengthens as businesses have adapted to new and safe ways of working that enable them to keep sites open during periods of local lockdown.”