Kingfisher France: Q1 Sales Growth Ahead Of Market

Kingfisher has published its first trading update for 2022/23, covering the three months ended 30th April 2022.

FRANCE

Total sales -3.1% (LFL -3.7%; 3-year LFL +13.7%). France continued to grow sales ahead of the market in Q1, driven by the performance of Castorama (five percentage points ahead of the market). LFL sales for the home improvement market in Q1 (as measured by Banque de France data(9) ) were -5.2% YoY.

Castorama sales +0.1%. LFL flat (3-year LFL +13.9%), reflecting resilient demand from both DIY and DIFM/trade customers. The continued strong performance at Castorama reflects work to extend and improve ranges, by introducing more local and international brands and by launching new OEBs, as well as ongoing work to improve our logistics operations and our competitive price positioning. Strong 3-year performance in outdoor, building & joinery, kitchen and EPHC categories. LFL sales of weather-related categories were -8% (+27% on a 3-year LFL basis). LFL sales of non-weather-related categories, including showroom, were +3% (+11% on a 3-year LFL basis).

Brico Dépôt sales -6.3%. LFL -7.5% (3-year LFL +13.5%), reflecting resilient demand against the backdrop of strong prior year comparatives, and a continued focus on strengthening its discounter credentials and differentiated ranges. Strong 3-year performance in outdoor, building & joinery, EPHC and kitchen categories. 

OTHER INTERNATIONAL

Poland sales +59.0%. LFL +54.5% (3-year LFL +22.8%), supported by market share gains, notwithstanding weak prior year comparatives due to temporary store closures in Q1 last year. Strong 3-year performance across all categories, in particular in the kitchen category. LFL sales of weather-related categories were +89% (+33% on a 3-year LFL basis). LFL sales of non-weather-related categories, including showroom, were +49% (+21% on a 3-year LFL basis). Poland opened one new big-box store in Q1.

Iberia sales -0.3%. LFL -0.3% (3-year LFL +11.8%), with resilient demand against strong prior year comparatives, though impacted by abnormally cold and wet weather during the period. Strong 3-year performance in the building & joinery, kitchen and surfaces & décor categories.

Romania sales -9.7%(4) , reflecting one additional month of sales in the prior year comparative (January 2021), which facilitated alignment to Kingfisher’s financial reporting calendar last year. LFL +13.9% (3-year LFL +32.8%) reflecting robust demand across most categories, despite the impact of COVID-related trading restrictions (lifted in March 2022).

Thierry Garnier, Chief Executive Officer, said: “Kingfisher has delivered a good first quarter of trading, with LFL sales 16.2% ahead of our pre-pandemic performance. While facing very strong comparatives in the prior year, our continued strategic progress has enabled us to retain a significant proportion of the increased sales during the pandemic.

“We continue to effectively manage inflationary and supply chain pressures. As a result, our product availability is now very close to ‘normal’ levels across all our banners, and we continue to deliver value for our customers through our own exclusive brands and competitive prices.

“Looking forward, we are reiterating our profit guidance for FY 22/23. We are focused on delivering on our strategic objectives and growth initiatives, including the growth of our scalable e-commerce marketplace, the expansion of Screwfix in the UK and France, new store openings in Poland, further increasing our trade customer base.

“We remain committed to delivering attractive returns for our shareholders and are today announcing a further £300m share buyback programme. This reflects our strong cash generation and our confidence in the Group’s outlook.”

Source : Kingfisher

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