Kingfisher has announced flat sales for the third quarter, aligning with market expectations despite challenging market conditions.
- Total sales reached £3.2bn during the quarter, experiencing a slight decline of 0.6%.
- Screwfix outperformed with a 1.8% rise in like-for-like sales, contributing to overall brand performance.
- B&Q’s traditional sales saw a 1.0% dip, counteracted by TradePoint’s 4.9% growth.
- E-commerce sales saw a substantial increase, particularly in B&Q’s online marketplace.
Kingfisher, the owner of B&Q and Screwfix, reported stable sales figures for the third quarter, maintaining alignment with or exceeding market expectations. The sales for this period totalled £3.2 billion, representing a subtle 0.6% decrease. The company’s robust performance in August and September was slightly marred by an October slowdown attributed to economic uncertainties and adverse weather in the UK and France.
In the UK and Ireland, Kingfisher’s performance varied across its brands. Screwfix showed impressive results, with a 1.8% rise in like-for-like sales and a 4.6% increase in overall sales. In contrast, B&Q experienced a 1.0% decline, with a like-for-like sales drop of 0.6%. However, B&Q’s trade sector, TradePoint, showed resilience with a 4.9% growth in like-for-like sales, demonstrating the brand’s continued strength in trade-focused services.
CEO Thierry Garnier optimistically noted the overall resilience of trading in the third quarter, highlighting the offset impact of increased consumer uncertainty in October linked to government budgets in the UK and France. “All our banners in the UK, France, and Poland performed in line or ahead of their respective markets, with particularly strong market share gains at Screwfix,” stated Garnier.
Kingfisher’s core categories, which comprise 69% of their sales, showed improved trends, bolstered by activities in repair, maintenance, and renovation. However, the ‘big-ticket’ categories, contributing 16% to the sales, continued to show softness, although signs of improvement offered a positive outlook.
On the e-commerce front, Kingfisher marked significant growth, with B&Q’s online marketplace expanding by 45% year-on-year, accounting for 41% of the brand’s total e-commerce sales in October. The overall penetration of e-commerce sales for Kingfisher increased by 1.3 percentage points to 18.8%, underscoring a shift towards online trading.
Looking ahead, Kingfisher has tightened its profit forecast for the full year, with adjusted pre-tax profit expected to range between £510 million and £540 million, slightly lower than the previous guidance of £510 million to £550 million. Garnier emphasised the importance of concentrating on elements within the company’s control, including strategic priorities, price management, and effective cost and cash management, as Kingfisher positions itself to capitalise on future opportunities in home improvement.
Kingfisher remains focused on executing strategic priorities amidst challenging conditions to sustain growth.
