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(Sharecast News) - Stationery retailer The Works said on Monday that trading had continued to build momentum in the opening weeks of its new financial year, prompting it to lift profit expectations after a strong start.
The update, released ahead of The Works' annual general meeting, showed likeforlike sales rising 10.4% in the first 18 weeks of FY27, accelerating from 5.9% in the same period last year.
The Works said growth had been broadbased across all four of its key product categories, reflecting the ongoing appeal of its screenfree, valuefocused offer and steady progress against its Elevating The Works strategy. Management highlighted the relevance of its familyfocused proposition at a time when shoppers remain priceconscious.
With trading ahead of plan, The Works now expects FY27 preIFRS 16 adjusted underlying earnings to come in at at least £16m, ahead of previous guidance and current market forecasts of £15m.
The Works said it remained mindful of the wider macroeconomic backdrop and the importance of the upcoming Christmas period, but noted that yeartodate performance had given it confidence to upgrade expectations.
Chief executive Gavin Peck said: "We are delighted with the strong trading momentum and like-for-like sales growth achieved during the first 18 weeks of the year, which includes the important Back-to-School trading period. This performance has supported a further upgrade to the board's FY27 pre-IFRS 16 adjusted EBITDA expectations and reflects the successful execution of our long-term growth strategy and our clear focus on delivering a differentiated customer proposition focused on affordable screen-free activities for the whole family.
"We remain focused on maintaining this strong trading momentum through the remainder of the financial year and delivering the group's exciting long-term potential for the benefit of all stakeholders."
As of 1100 BST, The Works shares were up 11.11% at 97p.
Reporting by Iain Gilbert at Sharecast.com
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