ProCook outperforms market as Q3 sales jump 11%

(Sharecast News) - Kitchenware retailer ProCook said on Wednesday that it outperformed the market in the third quarter, reporting a jump in sales and a "strong" peak trading period. In the 12 weeks to 5 January, total revenue rose 11.2% to £25.6m and like-for-like revenue grew 3.4%, outperforming the market by approximately 10%.

Retail revenue was up 12.4%, with LFL growth of 0.9%, while ecommerce revenue ticked up 9.2%, reflecting LFL growth of 7.1% driven by increased traffic and conversion year on year.

During the quarter, ProCook opened five new stores as planned, taking the year to date total to nine, with two smaller garden centre stores closed during the quarter.

Chief executive Lee Tappenden said: "We have delivered a strong trading performance in the important peak period, continuing to outperform the market, whilst providing excellent-rated service to our growing customer base.

"Performance was particularly strong in the later part of the quarter as a result of the actions we took to elevate our Black Friday and Christmas campaigns this year, supported by improved promotional and seasonal product ranges, and stronger inventory levels.

"This performance was in line with our expectations for the full year which, notwithstanding ongoing consumer uncertainty, reflects the typical benefit from second-half weighting of revenue and profitability, combined with our retail network expansion, margin improvements and ongoing cost discipline."

The company plans to open a further three new stores in the remainder of the financial year, taking the total to 12 new stores this year.

"We therefore remain confident in delivering continued strategic progress and sustainable growth over the medium term, as we work towards our ambitions of 100 stores, £100m revenue and 10% operating profit margin," said Tappenden.

At 0900 GMT the shares were up 9% at 42p.