The Works lifts margins and narrows losses as stores outperform despite online disruption

TheWorks.co.uk plc ( (GB:WRKS) ) has provided an update.

The Works reported interim results for the 26 weeks to 2 November 2025 showing resilient in-store performance but disrupted online trading. Total like-for-like sales rose 0.3% as store LFLs climbed 4%, significantly outperforming the wider non-food retail market, while online sales fell 36% due to operational issues at a new third-party fulfilment partner. Revenue edged down 0.3% to £123.8m, but losses narrowed, with pre-IFRS 16 adjusted EBITDA improving to a £1.0m loss and adjusted loss before tax reduced to £5.1m, helped by a 330bps product margin gain, ongoing cost savings and tighter cost control. Net debt improved to £5.3m and no interim dividend was declared as the Board prioritises strengthening the balance sheet. In the first 11 weeks of the second half, store LFLs rose 1.2% against a weakening market, but online sales remained heavily constrained, dragging total LFLs down 4.2%; margin expansion and cost savings continued despite heavier Black Friday discounting and higher post-Christmas clearance. Strategic initiatives under the ‘Elevating The Works’ programme—including stronger brand marketing around screen-free family time, improved store standards, selective net store openings and efficiency gains in distribution—are underpinning profitability and reinforcing the retailer’s positioning as a value-led, screen-free alternative in a tough consumer environment. The company’s cash position improved after Christmas and management remains confident of delivering FY26 profit in line with market expectations, with further sales, profit growth and shareholder value targeted in subsequent years, while it works with its fulfilment partner to resolve online capacity challenges.

The most recent analyst rating on (GB:WRKS) stock is a Hold with a £38.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

Spark’s Take on GB:WRKS Stock

According to Spark, TipRanks’ AI Analyst, GB:WRKS is a Neutral.

The overall score reflects a mixed outlook for TheWorks.co.uk plc. The company’s strong trading performance and undervaluation are positive factors, but these are tempered by weak technical indicators and financial vulnerabilities, particularly high leverage and inconsistent profitability.

To see Spark’s full report on GB:WRKS stock, click here.

More about TheWorks.co.uk plc

TheWorks.co.uk plc is the UK’s leading specialist retailer of affordable, screen-free activities for the whole family, offering products across reading, learning, creativity and play. With more than 90% of sales generated in stores, the business focuses on value-conscious consumers seeking low-cost, non-digital ways to spend leisure time, and continues to optimise its nationwide store estate while using online as a complementary channel.

Average Trading Volume: 154,678

Technical Sentiment Signal: Sell

Current Market Cap: £21.5M

Learn more about WRKS stock on TipRanks’ Stock Analysis page.