Kingfisher reports flat sales for the third quarter, maintaining market expectations despite tough conditions.
- The company’s sales slightly decreased to £3.2bn, with like-for-like sales down by 1.1%.
- August and September showed strong performance, but October sales were impacted by UK and France uncertainties.
- Screwfix demonstrated growth, whereas B&Q experienced a slight decline in both sales and like-for-like performance.
- E-commerce trends showed a positive trajectory, with a 45% growth in B&Q’s online marketplace year-on-year.
Kingfisher, the owner of well-known home improvement brands, reported flat sales for the third quarter. Despite challenging market conditions and declining consumer confidence in the UK and France, the company’s sales were in line with or exceeded market expectations. Overall sales fell to £3.2 billion, showing a marginal decline of 0.6%, alongside a like-for-like sales decrease of 1.1%.
Sales performance varied across the quarter, with August and September yielding solid results. However, uncertainty surrounding government budgets in the UK and France, coupled with adverse weather conditions, led to a noticeable slowdown in October. This partial decline reflects the volatile economic environment.
In the UK and Ireland, Kingfisher’s brands displayed mixed results. Screwfix, for instance, achieved a like-for-like sales increase of 1.8% and an overall sales growth of 4.6%. On the other hand, B&Q faced a minor setback, registering a 1.0% drop in sales and a 0.6% fall in like-for-like sales. Yet, TradePoint, B&Q’s segment targeting trade professionals, saw a favourable like-for-like sales growth of 4.9%.
According to CEO Thierry Garnier, the company’s resilience was evident with all banners in the UK, France, and Poland performing in line with or outpacing their respective markets. Screwfix, in particular, made significant market share gains, reflecting its robust performance and strategic positioning.
Kingfisher’s core categories, which include repair and maintenance, accounted for 69% of its sales and exhibited improving trends. However, larger purchases or ‘big-ticket’ items, contributing to 16% of sales, remained sluggish, despite hints of recovery.
E-commerce emerged as a bright spot, with B&Q’s online marketplace expanding markedly by 45% compared to the previous year, thus constituting 41% of B&Q’s total e-commerce sales in October. This shift underscores a broader increase in Kingfisher’s e-commerce penetration by 1.3 percentage points, reaching 18.8%.
Looking ahead, Kingfisher adjusted its full-year profit forecast slightly downward, estimating an adjusted pre-tax profit between £510 million and £540 million, revising its earlier upper limit of £550 million. CEO Garnier noted ongoing political and macroeconomic developments that could introduce further uncertainty but emphasised the company’s strategy of strengthening market share through key priorities while efficiently managing resources.
Kingfisher remains proactive in navigating market challenges with a focus on strategic priorities and growth opportunities.
