The Works to meet FY market expectations despite challenging backdrop

(Sharecast News) - The Works said on Monday that it was confident of meeting full-year market expectations despite a challenging backdrop. In a statement of ahead of its annual general meeting, the retailer said it has seen positive trading in FY26 despite the consumer backdrop remaining challenging.

Like for like sales in the year-to-date continue to outperform the wider market "and reflect the ongoing delivery of our 'Elevating The Works' strategy," it said.

The Works said significant strategic progress has been made since the beginning of the financial year.

This includes two key strategic projects undertaken ahead of its peak Christmas trading period. The company pointed to the recent completion of a new mezzanine level at its retail distribution centre, which will increase its operational capacity. In addition, The Works said it's in the final stage of transitioning to a new third-party online fulfilment provider.

"In light of the positive year-to-date trading performance, ongoing cost-saving activity and sustained margin growth, we are well-positioned to offset significant cost headwinds and deliver further strategic and financial progress," it said.

"The board remains confident in delivering FY26 profit in line with market expectations of pre-IFRS 16 Adjusted EBITDA of £11.0m."