Kingfisher, the owner of B&Q, recorded a slight profit increase despite declining sales, primarily due to weak demand for big-ticket items.
- B&Q experienced a significant 11.6% drop in big-ticket item sales, contributing to a 1.8% decrease in overall group sales.
- Despite challenging conditions, Kingfisher’s statutory pre-tax profits rose by 2.3% to £324 million in the first half of the year.
- The company’s performance in the UK showed resilience, but French operations saw a notable decline in like-for-like sales by 7.2%.
- Kingfisher prioritizes effective cost and inventory management, supported by strong e-commerce and TradePoint sales, which grew by 7.1%.
Kingfisher, which owns B&Q, reported a slight uptick in profits for the first half of the year, despite facing a downturn in sales driven by sluggish demand for high-priced items. Specifically, B&Q saw an 11.6% drop in sales of such items, which played a significant role in the group’s overall 1.8% sales dip. However, the company’s statutory pre-tax profits nudged up by 2.3%, reaching £324 million for the six months ending July 31.
In its latest quarter, Kingfisher’s like-for-like sales dipped by 0.3%, with UK sales showing resilience by only declining 0.2%. This was attributed to the negative impact of weather on seasonal sales. In contrast, their French business witnessed a more severe decline in like-for-like sales, dropping 7.2%. Despite these challenges, the home improvement retailer noted a recovery in seasonal sales beginning in early July, although big-ticket sales remained frail, declining by 6.8% on a like-for-like basis over the half-year period.
CEO Thierry Garnier emphasized the company’s effective management of costs and inventory amidst these conditions. According to Garnier, “Trading overall in the first half was in line with our expectations…Our UK and Ireland banners continued to gain market share, supported by strong e-commerce sales and our progress in addressing trade customer needs.” This reflects Kingfisher’s strategic approach in focusing on digital sales channels and catering to trade customers.
Despite a 1% fall in like-for-like sales at B&Q, the company benefited from solid growth in e-commerce and its TradePoint division, which saw a robust 7.1% increase in like-for-like sales. Notably, marketplace sales at B&Q accounted for 40% of its online sales during this period. Meanwhile, Screwfix, another Kingfisher entity, showed a 1.2% rise in sales over the half-year.
Looking ahead, Garnier expressed optimism about Kingfisher’s growth potential, stating: “With positive early signs of a housing market recovery, notably in the UK, Kingfisher is strongly positioned for growth in 2025 and beyond.” The company aims to maintain a focus on managing costs and cash effectively while pursuing market share growth through its key strategic priorities.
Kingfisher’s strategic focus on e-commerce and cost management positions it well for future growth despite current sales challenges.
