Christmas sales up at The Works as c.e.o. steps down

The Works chief executive Kevin Keaney is stepping down with immediate effect as The Works posts an increase in sales for the Christmas trading period.

Chief financial officer Gavin Peck, who joined The Works in April 2018, will replace Keaney, who said it is the "right time" to leave after an "incredible" nine years. Head of finance Rosie Fordham has been made interim chief financial officer.

The Works recorded like-for-like sales growth of 1.5%, for the 11 weeks to January 2020 and experienced a "record Christmas sales performance".

Last year the discount retailer announced plans to open 50 new stores across the UK, but this morning Peck said the firm has taken action to open fewer new stores in order to deliver profitable growth.

The Works also posted its interim results for the 26 weeks to 27th October 2019, reporting a like-for-like sales decline of 1.9%, "impacted by the difficult consumer backdrop". The firm suffered an adjusted earnings before interest, tax, depreciation and amortisation (EBIDTA) loss of £4.3m, "reflecting the seasonal nature of the business".

Peck said: "I am pleased to report that the Company delivered a solid performance during the key Christmas trading period with like-for-like sales up 1.5%. This was driven by growth in both stores and online. However, to ensure we are well placed to deliver profitable growth in the medium-term we have taken action to refocus our strategy by opening fewer new stores, with a view to driving improved performance in our existing estate and increasing our focus on cost savings. We remain confident in the prospects for the Company with the business trading-in line with the Boards' full-year expectations."