Kingfisher maintains profit guidance as it reports higher UK sales
Kingfisher has seen its first-quarter like-for like sales rise by 1.2% in the UK and Ireland after like-for-like sales at B&Q and Screwfix rose by 0.4% and 2.4% respectively.
However, sales at Castorama and Brico Dépôt in France declined by 5.3% which was in line with expectations.
Across the Kingfisher group, which also includes businesses in Poland, Iberia and Romania, total sales fell by 0.3% to £3.26 billion but rose by 0.3% at constant currency.
Thierry Garnier, Kingfisher chief executive, said: “Trading in the first quarter has been in line with our expectations. We have seen continued resilience in our core categories, although ‘big-ticket’ sales have been weak reflecting the broader market as expected.
“In the UK, we have gained considerable share across our banners. Our trade proposition continues to resonate with customers, driving positive like-for-like sales at Screwfix and strong like-for-like sales growth of 8.5% at TradePoint.”
Kingfisher said its second quarter has started in line with the underlying sales trends of the first, with group like-for-like sales down 2.5% in the three weeks to 18 May. Kingfisher expects to deliver around £120 million of additional cost reductions and productivity gains this year, which will partially offset higher pay rates and technology investments.
As a result, the group is maintaining its current guidance for full year adjusted pre-tax profit of around £490 million to £550 million.
Garnier added: “We remain focused on driving productivity gains and maintaining tight control of our costs and inventories. In France we are pushing ahead with our plan to improve performance, having successfully completed our structural simplification and transitioned to new leadership at Castorama.
“Looking forward, we confirm the guidance outlined in March for the full year, including our expectations for the overall market in 2024.”
