TheWorks online sales jump in lockdown

(Sharecast News) - TheWorks reported a surge in online sales since the imposition of the lockdown and an increase in full-year revenue, as it insisted it has sufficient liquidity to get through the coronavirus crisis.
The company, which sells gifts, arts and crafts and stationery, said online sales were up more than three times the equivalent period last year during the lockdown, which has been in place since 23 March.

It saw a "significant" increase in sales, both in stores and online, prior to store closures, with overall like-for-like sales up 81% in the week to 22 March. "This reflected strong customer demand for products to support children's ongoing education, mindfulness materials to support mental health and products to 'beat the boredom' during this period of social distancing," it said.

In the year to 26 April, revenue rose 3.5%, with overall LFL sales in the year to 22 March - the day before all stores were closed due to the Covid-19 outbreak - 0.7% higher, with growth in stores and online.

TheWorks said it was continuing to monitor the impact of the pandemic closely and is putting in place plans to re-open its stores "at the appropriate time" and subject to government guidance.

"The board is confident that TheWorks' proposition will continue to resonate well with customers during this period of extended social distancing," it said. "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."