Kingfisher raises outlook after surge in first quarter sales
Kingfisher has seen its first quarter total sales increase by 60% to £3.4 billion after it experienced strong customer demand in each of its categories.
In the three months to 30 April, like-for-like sales climbed by 64.2% as two-year like-for-likes rose by 22.5%.
The DIY retail group said it performed well in the UK and Ireland where like-for-like sales rose by 65%. Sales at B&Q climbed by 81.9% following strong demand in all categories against weak comparatives in the previous year. Meanwhile, Screwfix like-for-likes grew by 39% due to strong momentum from trade customers.
Looking at Kingfisher’s international performance, there was strong growth in France, Iberia and Romania. However, like-for-like sales in Poland declined by 12%.
Kingfisher said ecommerce continued to be its fastest-growing channel with two-year growth of over 258% in the period.
Thierry Garnier, Kingfisher chief executive, said: “The group delivered strong sales growth in the first quarter, with like-for-like sales up 64% and up by 23% on a two-year basis. This is a testament to the efforts of our colleagues, the skill and professionalism of our supply chain teams, and the responsiveness in managing daily changes within all our store operations. We continue to see high levels of demand from both new and existing customers, with clear progress made on our ‘Powered by Kingfisher’ strategic priorities, especially in four key areas.”
In light of the first quarter performance, Kingfisher now expects mid-to-high teens group like-for-like sales growth in the first half of its financial year. This compares to a previous forecast of low double-digit growth. First half adjusted pre-tax profit is also anticipated to be ahead of previous expectations at between £580 million and £600 million.
Garnier added: “With the strong start to the year, we now anticipate first half sales and adjusted pre-tax profit to be ahead of our previous expectations. Whilst the second half of the financial year remains naturally uncertain, we continue to see supportive long-term trends for our industry and are confident of continued outperformance of our wider markets.”
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