B&Q owner Kingfisher suffers a slowdown in sales after a fall in demand for big-ticket
B&Q owner Kingfisher suffered a fall in sales in the first quarter of the year, blaming a late start to spring and consumers holding back on big-ticket items.
The group, which also owns Screwfix, said underlying like-for-like sales fell 0.7 per cent in the three months to 30 April, while total sales rose 1.4 per cent to £3.3billion.
Screwfix posted a 4.1 per cent jump in like-for-like sales, as the retailer also increased its market share, which helped to offset a decline in sales at B&Q.
B&Q reported a 4.1 per cent drop in like-for-like sales, with the retailer blaming poor weather and a ‘late start’ to spring for reducing footfall and demand for outdoor products.
Big-ticket sales remained under pressure, particularly in bathrooms, but new kitchen ranges performed strongly.
Rising sales: Screwfix saw like-for-like sales increase 4.1% in the period
Kingfisher said it was ‘mindful of the consumer environment’ but hailed a ‘resilient’ start to the year. It reiterated its full-year adjusted pre-tax profit guidance of between £565million and £625million.
Trade and online sales remained bright spots. Trade sales excluding Screwfix increased by 17 per cent, while online sales excluding Screwfix rose by 14 per cent.
In its international businesses, France saw like-for-like sales slip 2.1 per cent as higher savings rates and a subdued home improvement market weighed on demand. Poland was broadly flat, while Iberia delivered growth of 6.6 per cent.
Kingfisher shares rose 5.51 per cent or 16.10p to 308.30p on Tuesday, having risen around 4 per cent in the past year.
Thierry Garnier, chief executive of Kingfisher, said: ‘While mindful of the consumer environment, we remain absolutely focused on delivering our strategy, disciplined gross margin and cost management, and consistent shareholder returns.
‘We are confident in achieving our full-year guidance and are well positioned to capitalise on the attractive long-term growth opportunities across our markets.’
Earlier this month Garnier announced plans to step down after nearly seven years to head up Netherlands-headquartered supermarket group Ahold Delhaize.
Garnier’s exact departure date has not been confirmed, but the group said he has a 12-month notice period and will continue in the role while it hunts for his successor.
Ahold Delhaize said Garnier is expected to replace its outgoing president and chief executive Frans Muller around the time of its annual general meeting in April 2027.
Garnier joined Kingfisher as chief executive in September 2019, just before the Covid-19 pandemic struck and at a torrid time for the business, which was shutting shops and battling tumbling profits.
Richard Hunter, head of markets at Interactive Investor, said: ‘The outlook for the company among investors has tended to receive a mixed reception of late, although the initial reaction to this update falls on the side of a positive relief rally which recognises the areas of resilience the group has highlighted.’
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