Kingfisher sales impacted by poor spring weather
Kingfisher has seen its total sales edge up 0.8% to £3.271 billion in its first quarter after the group put in a “resilient” performance in big-ticket categories. On a like-for-like basis, sales were down 3.3%.
In the three months to 30 April, total sales in the UK and Ireland, where Kingfisher operates the B&Q and Screwfix fascias, rose by 1.4%, but were down 0.8% like-for-like due to seasonal categories being impacted by unusually poor spring weather. While total sales at B&Q dropped by 1.5% in the period, sales at Screwfix rose by 6.6%.
Meanwhile sales in France at Kingfisher’s Castorama and Brico Dépôt chains increased by 1.2%. However, sales in Poland and Romania fell by 3.3% and 5.7% respectively, although there was uplift of 8.1% in Iberia.
Kingfisher said it had experienced an improvement in seasonal sales since early April, as well as continued resilience in its core and ‘big-ticket’ categories. For the three weeks to 20 May 2023, like-for-like sales were down 1%, including a 0.4% impact from the additional UK coronation public holiday.
Thierry Garnier, Kingfisher chief executive, said: “As we move through our key trading season, we are pleased to see that sales in our core and ‘big-ticket’ categories, which make up over 80% of our total sales, are showing continued resilience.
“The unusually poor spring weather in the UK and France affected our seasonal sales in the quarter, impacting demand for items such as garden and outdoor products.
“We have however seen an improvement in trading since early April, and anticipate a release of some pent-up demand as the weather continues to improve. Our inventory remains healthy and, in aggregate, is reducing in line with our expectations.”
The group said it is comfortable with market expectations for an adjusted full year pre-tax profit of £634 million and expects to report an adjusted pre-tax profit of around £350 million in its first half.
Kingfisher said it is continuing to focus on competitive pricing while balancing inflationary pressures.
