Despite weakening consumer sentiment in the UK and France, Kingfisher’s third-quarter sales were steady, matching or exceeding market forecasts.
- The company, which owns B&Q and Screwfix, reported total sales of £3.2 billion, a slight 0.6% drop.
- Sales figures were robust in August and September but slowed in October due to budget concerns and adverse weather conditions.
- E-commerce remains a strong sector for Kingfisher, with significant growth in B&Q’s online marketplace achieving a 45% rise year-on-year.
- CEO Thierry Garnier highlighted the company’s focus on gaining market share and managing costs amidst a challenging economic landscape.
Kingfisher, the parent company of B&Q and Screwfix, announced stable sales figures for its third quarter, aligning well with market expectations even as economic conditions in the UK and France remain uncertain. The company recorded a total of £3.2 billion in sales for the quarter ending October 31, reflecting a modest decline of 0.6%. This performance indicates resilience despite the challenging consumer environment.
The sales trajectory was favorable in August and September but took a downturn in October, primarily due to uncertainty surrounding government budgets and poor weather that impacted consumer spending. In the UK and Ireland, Kingfisher observed mixed results across its brands. Screwfix demonstrated growth, with like-for-like sales increasing by 1.8% and overall sales up by 4.6%. Conversely, B&Q experienced a minor sales dip of 1.0%, with a similar decline in like-for-like figures at 0.6%. B&Q’s TradePoint, targeting professional trades, showed strength with a like-for-like sales growth of 4.9%.
CEO Thierry Garnier commented on the company’s third-quarter performance, noting, ‘Overall trading was resilient. Improved performance earlier in the quarter was offset by the impact of increased consumer uncertainty in the UK and France in October, related to government budgets.’ Garnier also emphasized strong market share gains, particularly at Screwfix, which outperformed expectations.
Kingfisher’s core product categories, accounting for 69% of total sales, continued to show positive trends, largely driven by repair, maintenance, and home renovation activities. However, high-value categories, representing 16% of sales, remained sluggish, though there were slight signs of recovery observed in this segment.
E-commerce remains a vital growth area for Kingfisher. In particular, B&Q’s digital marketplace surged by 45% compared to the previous year, accounting for 41% of B&Q’s total e-commerce sales in October. Overall, Kingfisher’s e-commerce penetration rose by 1.3 percentage points to 18.8%.
Looking ahead, Kingfisher has adjusted its profit guidance for the full year, projecting an adjusted pre-tax profit in the range of £510 million to £540 million, narrowing from an earlier forecast of £510 million to £550 million. Garnier acknowledged the additional economic challenges due to recent political and macroeconomic developments but reiterated the company’s focus on strategic priorities, market share growth, retail price management, and effective cost control.
Kingfisher remains optimistically positioned to leverage future opportunities within the home improvement sector.
