Kingfisher shares are in the red today following its quarterly update, in which it held its guidance for the year. The firm posted improving sales in its UK and Ireland market despite a decline in “big-ticket” sales.
The company, which owns B&Q, TradePoint and Screwfix in the UK, along with European chains Castorama, Brico Dépôt and Koçtaş, reported total sales of £3.26bn for the three months to 30 April, down 0.3% on a reported basis but up 0.3% at constant currencies.
On a like-for-like basis, sales were down 0.9%, with growth in the UK and Ireland, Poland, Iberia and Romania offset by a 5.3% drop in France, which it said was “broadly in line with [a] weaker market”.
Kingfisher has seen a more than 6% dip in “big ticket” items group-wide, as shaky consumer confidence continues to bite. These high-cost purchases, such as kitchens and bathrooms, account for roughly 15% of Kingfisher’s total turnover.
Kingfisher said its second quarter has started in line with the underlying sales trends of the first, with group like-for-like sales down 2.5% in the three weeks to 18 May. Kingfisher expects to deliver around £120m of additional cost reductions and productivity gains this year, which will partially offset higher pay rates and technology investments.
As a result, the group is maintaining its current guidance for full year adjusted pre-tax profit of around £490m to £550m.
