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![\"Marks](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2022\/08\/Marks-Electrical-employs-its-own-team-of-drivers-to-operate-its-fleet-of-40-branded-delivery-vehicles-out-of-its-200000-sq-ft-warehouse-in-Leceister.jpg\" "\\"Marks")
<\/div>\nMarks Electrical has lowered its full-year profit guidance, despite a boost in sales after profit margins failed to lift amid the challenging trading environment.<\/p>\n
Sales for the electrical retailer rose 22% to \u00a388.9m in the nine months to December 31 thanks to a 17.8% surge in revenue to \u00a335.1m over the golden quarter.<\/p>\n
However, its gross product margin did not increase to the levels it expected over the quarter and \u201cthe impact of this in the peak trading period has had a material impact on our full-year profit guidance\u201d.<\/p>\n
As a result, Marks Electrical now expects full-year sales to be in the range of \u00a3115-118m and EBITDA in the range of \u00a35-6m.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span>\u00a0<\/span><\/strong><\/p>\nChief executive Mark Smithson said: \u201cI continue to remain proud of the entire team at Marks Electrical for delivering a record peak trading period whilst gaining market share and maintaining our industry leading Trustpilot score of 4.8. <\/span><\/p>\n\u201cThis further demonstrates the strength and attractiveness of our market-leading customer offering and as brand awareness improves, we continue to see a strong repeat customer rate.<\/span><\/p>\n\u201cWhilst I am personally frustrated about our expected margin progression in the second half, I remain confident about our long-term growth prospects and continue to be impressed by our ability to deliver market share gains profitably, against a fiercely competitive backdrop, whilst maintaining the highest levels of customer service standards in the industry.<\/span><\/p>\n\u201cAs we work tirelessly as a team to enhance our gross product margin in the remaining months of FY24 and into FY25, I also know from 37 years of trading that margin fluctuations are inevitable, they present us with an opportunity to learn, and will ultimately enable the group to deliver long-term value creation and position us as the UK\u2019s leading premium electrical retailer.\u201d<\/span><\/p>\n
Chief executive Mark Smithson said: \u201cI continue to remain proud of the entire team at Marks Electrical for delivering a record peak trading period whilst gaining market share and maintaining our industry leading Trustpilot score of 4.8. <\/span><\/p>\n \u201cThis further demonstrates the strength and attractiveness of our market-leading customer offering and as brand awareness improves, we continue to see a strong repeat customer rate.<\/span><\/p>\n \u201cWhilst I am personally frustrated about our expected margin progression in the second half, I remain confident about our long-term growth prospects and continue to be impressed by our ability to deliver market share gains profitably, against a fiercely competitive backdrop, whilst maintaining the highest levels of customer service standards in the industry.<\/span><\/p>\n \u201cAs we work tirelessly as a team to enhance our gross product margin in the remaining months of FY24 and into FY25, I also know from 37 years of trading that margin fluctuations are inevitable, they present us with an opportunity to learn, and will ultimately enable the group to deliver long-term value creation and position us as the UK\u2019s leading premium electrical retailer.\u201d<\/span><\/p>\n