Kingfisher reports stable sales for the third quarter despite market challenges.
- The parent company of B&Q and Screwfix announced a slight decrease in total sales.
- Like-for-like sales also saw a minor drop, reflecting broader market trends.
- E-commerce saw significant growth, particularly for B&Q’s online marketplace.
- CEO Thierry Garnier remains optimistic amidst various macroeconomic uncertainties.
Kingfisher has reported stable sales figures for the third quarter, aligning with market expectations despite challenging economic conditions in the UK and France. Total sales reached £3.2 billion, marking a 0.6% decline compared to previous periods. Similarly, like-for-like sales experienced a slight dip of 1.1%, suggesting resilience amidst consumer sentiment shifts.
August and September brought solid sales performance; however, October witnessed a slowdown. This change in pace was attributed to factors such as uncertainty related to government budget decisions and adverse weather conditions affecting consumer behaviour in the UK and France.
In the UK and Ireland, Kingfisher’s brands displayed varied performance. Screwfix achieved commendable growth with a 1.8% rise in like-for-like sales and a 4.6% increase in overall sales. Conversely, B&Q saw a decrease of 1.0% in sales, with a 0.6% decline in like-for-like sales.
TradePoint, a branch of B&Q focused on trade customers, enjoyed a 4.9% rise in like-for-like sales, reflecting robust demand in its sector. Kingfisher’s primary categories, constituting 69% of its sales, demonstrated improved trends largely driven by repair and maintenance activities. Meanwhile, ‘big-ticket’ items, which account for 16% of sales, showed signs of recovery despite earlier softness.
Kingfisher’s e-commerce strategy continues to show promise, with a noteworthy 45% year-on-year growth in B&Q’s online marketplace. This digital expansion contributed to 41% of B&Q’s total e-commerce sales in October. The group’s overall e-commerce penetration rose by 1.3 percentage points, reaching 18.8%.
Going forward, Kingfisher has adjusted its full-year profit guidance, predicting an adjusted pre-tax profit between £510 million and £540 million, slightly narrowed from the earlier range of £510 million to £550 million. CEO Thierry Garnier noted, “Looking towards next year, recent political and macroeconomic developments have layered incremental uncertainty onto the near-term outlook in our markets.” He reaffirmed the group’s commitment to strategic priorities that focus on market share gains and efficient management of retail operations.
Kingfisher faces a challenging market environment with confidence and strategic focus, poised for potential growth.
