Kingfisher third quarter trading boosted by strong demand for energy efficient products
DIY retailer Kingfisher has said it posted a resilient trading performance in its third quarter with total sales up 1.7% at constant currency to £3.3 billion and like-for-like sales rising by 0.2%.
In the three months to 31 October, sales were significantly ahead of pre-pandemic levels with a like-for-like uplift of 15.3% on three years ago. The group said DIY sales were supported by strong demand for energy efficient products.
However, like-for-like sales in the UK and Ireland fell by 2.3% year-on-year after third quarter trading was adversely impacted by the abnormally warmer weather in October and Her Majesty the Queen’s funeral in September.
B&Q’s like-for-likes were down 3.5% in the quarter compared to last year but up 13.1% on a three-year basis.
Meanwhile Screwfix sales edged down 0.5% on last year but rose by 12.4% compared to pre-pandemic levels.
Looking at Kingfisher’s international businesses, like-for-like sales in France, where Kingfisher operates the Castorama and Brico Dépôtt brands, rose by 0.5% year-on-year. In addition, sales in Poland, Iberia and Romania increased by 7.6%, 3.4% and 4.2% respectively in the period,
Thierry Garnier, Kingfisher chief executive, said: “Our sales trends continued to be resilient, with like-for-like sales 15.3% ahead of pre-pandemic levels in the quarter. This was supported by continued market share growth, including strong gains at Screwfix, TradePoint and Castorama Poland.
“While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency. DIFM and trade activity also continues to be well supported by robust pipelines for home improvement work.
“Competitive pricing remains a priority. With our customers facing rising living costs, we are determined to make home improvement affordable and accessible – particularly through our own exclusive brands which represent 45% of our sales.
Kingfisher said it has made a good start to fourth quarter trading with a like-for-like uplift of 2.8% for the three weeks to 19 November. The group said it is expecting its full year adjusted pre-tax profit to be in the range of circa £730 million to £760 million compared to a previous guidance of around £770 million. This is due higher wage and energy costs and the group’s investment in Screwfix France store openings.
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