Investing.com -- Shares of Howden Joinery Group Plc (LON:HWDN) saw a notable increase of 6.9% on Tuesday, as the company reported an uptick in sales momentum in its U.K. division from the start of the year to mid-April.
The improvement reflects a 1.4% year-on-year increase in same-depot sales, adjusted for working days—marking a positive turnaround from the second half of the previous year.
The company’s U.K. trading performance showed modest price inflation, exceeding the roughly 1.5% recorded in 2024 but falling short of the approximately 3.5% price increase that had been implemented.
Despite the price hikes not fully sticking, Howdens believes its U.K. volumes have remained flat to mildly down, indicating resilience in a challenging market. The company also highlighted that it has continued to outperform the underlying market during this period.
Internationally, Howdens is experiencing robust growth, with its divisions reporting mid-teen same depot sales growth over the same timeframe.
This international performance, alongside the U.K. division’s results, has led to the company stating it is "on track with our outlook for 2025."
The 2024 results had management comfortable with a 2025 EBIT forecast of approximately £340 million, which would be flat YoY. This outlook anticipates an underlying market volume decline of around -2-3%, but expects Howdens to outpace this with its own performance and low single-digit price inflation.
In light of these developments, Jefferies analysts commented, "Howdens’ first update of the year looks reassuring with improving sales momentum in its core UK division, albeit with growth still largely price-driven in a weak market. With the outlook reiterated, we expect limited consensus changes today."