B&Q-owner Kingfisher bounces back after initial lockdown hit
B&Q-owner Kingfisher has reported more than one-fifth rise in second quarter profit, as its stores in the UK and Europe emerged from coronavirus lockdowns.
The home improvement group said on Wednesday that underlying sales grew 21.8 per cent year-on-year in the three months to June 13, as customers took on more DIY projects than before under lockdown.
Kingfisher, which also owns Screwfix, said it could not provide specific guidance for its 2020-21 year given the uncertainty around the pandemic.
It has already announced, in March, that it would not pay a final dividend.
Shares rose six per cent this morning, as the company reported an improving relative sales trend.
Like-for-like sales went from being 74 per cent down in early April to more than 25 per cent up in the second week of May.
Kingfisher boss Thierry Garnier said: “When the various lockdowns began, we rapidly transformed our operations to meet a sharp increase in e-commerce, while adapting our retail space and processes to ensure a safe reopening of stores.
“In doing so, the social distancing and other health and safety protocols we established have contributed to setting the standard in non-food retailing.”
Kingfisher’s UK stores, as well as those in France, were closed from mid-March due to the lockdown.
However, it quickly made click-and-collect and home delivery options available, helping it make a fourfold increase in e-commerce sales since mid-March.
Stores gradually started to reopen in late April.
As of 12 June Kingfisher had access to more than £3bn in cash.
For the full year ending 31 January, Kingfisher reported adjusted profit down 5.2 per cent to £544m, with total sales down 1.5 per cent to £11.5bn.
Statutory pre-tax profit fell two-thirds to £103m.
This came after the company took £441m in exceptional items.