DIY demand boosts sales at B&Q and Screwfix owner
Strong UK sales have driven a positive start to the year for B&Q owner Kingfisher, despite a slowdown in sales in France and Poland.
The home improvement company, which operates 1,900 stores across seven European countries, said total sales rose 1.8 per cent to £3.31bn in the three months ended April 30.
Shares dropped two per cent in early trades in response.
Growth was driven by a strong performance at UK chains B&Q and Screwfix, with sales up by 7.4 per cent and 4.1 per cent respectively.
Homeowners stocking up on items such as BBQs for the summer and DIY equipment helped the group in the first few months of the year.
The UK accounted for around just over half of total sales at Kingfisher, with a further 10 per cent of sales in France and just over 10 per cent in Poland.
Like-for-like sales in Poland fell 3.2 per cent year on year, which Kingfisher attributed to “geopolitical factors”.
Sales in France improved year on year but remained rocky. Like-for-like sales dropped 3.2 per cent to £976m, with falls of around three per cent at both Castorama and Brico Dépôt.
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B&Q owner Kingfisher’s French troubles continue
Kingfisher has struggled with low consumer sentiment in France for years, with a restructuring plan already in place for Castorama.
CEO Thierry Garnier said: “We have made a good start to the year with… market share gains in all key regions and further progress in our strategic priorities.
“Our UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce.
“France delivered sequential improvement, outperforming challenging market conditions, while Poland, as expected, experienced short-term volatility due to geopolitical factors.
“It is still early in the year and consumer sentiment remains mixed across our markets. We are focused on executing our strategic growth priorities, maintaining discipline on margin and costs, and driving shareholder returns.”
The company reaffirmed its full-year guidance.