Kingfisher Q1 like for like sales down 4%, B&Q down 9%

Kingfisher released their Q1 trading update this morning, with their Q1 LFL sales down 4.0% reflecting unusually adverse weather conditions which impacted footfall.

The impact on LFL sales of weather related categories & temporary UK store closures:

• At Group level around 3% of 4% decline.
• At operating company level: B&Q c.-6% (outdoor products & snow related store closures). Castorama France c.-4% (outdoor products) and Screwfix c.-2% (snow related store closures).
• Still on track to deliver Year 3 strategic milestones of our transformation plan.
• Further £40m returned (13.5m shares) year to date via share buyback. Have now returned £500m of c.£600m capital return commitment(4); commencing next £50m of remaining £100m.

Véronique Laury, Chief Executive Officer, said:

“It was a challenging start to the year with exceptionally harsh weather across Europe and weak UK consumer demand. This impacted footfall, especially sales of weather related categories. February and March were particularly affected with sales improving over the course of April and into May.

“We are on track to deliver our ONE Kingfisher strategic milestones for the third year in a row and we continue to see tangible delivery of our plan. Around 40% of our ranges are now unified and continue to be well received by customers. Sales of these ranges, excluding outdoor products, are up, and we expect to grow the full year Group gross margin, after clearance costs. Meanwhile, we are into the final year of our unified IT platform roll out with Poland now underway and Brico Dépôt France due to start soon.

“Market conditions continue to be mixed. The UK is uncertain, as demonstrated by recent weak retail sales data; France is encouraging, but volatile; whilst Poland continues to be supportive. We remain confident about delivering the business and customer benefits of our transformation plan, supported by the continued hard work and expertise of our colleagues.” 

Source: Insight DIY Team

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