Kingfisher: B&Q owner holds guidance despite weak ‘big-ticket’ sales
B&Q owner Kingfisher has held its guidance for the year, as the firm posted improving sales in its UK and Ireland market despite a decline in ‘big-ticket’ sales.
The home improvement retailer, which also owns the Screwfix and TradePoint brands, said total sales in the first quarter rose 0.3 per cent to £3.3bn.
In its home market of the UK, total sales grew 2.7 per cent, with sales at both “banners growing ahead of their respective markets”.
B&Q sales were up 0.4 per cent, helped by a strong performance in e-commerce and the trade segment. The firm said this helped offset a weaker sales performance in ‘big-ticket’ categories.
Meanwhile at Screwfix sales grew 6.4 per cent due to demand from trade customers.
In its French arm trading was not as strong with sales down 8.1 per cent, while in Poland sales were up by 3.1 per cent.
Kingfisher has faced challenges in maintaining its earnings since 2020 due to headwinds such as high inflation which has impacted consumer spending. After the pandemic, it’s also seen a slowdown in Brits doing home improvements, which boomed during lockdowns.
Thierry Garnier, chief executive officer, of Kingfisher, 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 LFL sales at Screwfix and strong LFL sales growth of 8.5 per cent at TradePoint.
He added: “In France, while slightly improved on Q4, trading reflects the weak overall retail market. And in Poland, we are seeing encouraging sales trends as the consumer environment improves.”
“Looking forward, we confirm the guidance outlined in March for the full year, including our expectations for the overall market in 2024.”
For the full year, the company expects to post adjusted PBT of between £490m- £550m.