Kingfisher Q1 Trading Update

Kingfisher have announced their Q1 Trading Update for the period up to 30th April 2019.

Véronique Laury, Chief Executive Officer, said: “The Group delivered positive sales growth in the first quarter, with sales of unified and unique ranges continuing to grow ahead of non-unified ranges. Screwfix, Poland and Romania delivered good sales growth while our performance in France was mixed within the quarter.

“This year we are focused on completing the building of our ‘engine’ and making our innovation more visible to customers. Our new outdoor range was rolled out to all markets in the quarter alongside a globally coordinated marketing campaign. We are also excited to be launching several new ranges this year which are unique to us and will further differentiate us from our competitors, including surfaces & décor and bathrooms across the Group, and kitchens in B&Q. In addition, we are piloting a new convenience store concept which we look forward to demonstrating at today’s Kingfisher Innovation Day.

“At this early stage of the year our expectations for the full year are unchanged, and we remain confident in our ability to deliver significant financial benefits over time.”

Q1 trading highlights by division (in constant currencies)

UK & IRELAND

• Total sales +5.0% (LFL +3.4%).
• B&Q UK & Ireland sales +2.8%. LFL +2.8% reflecting stronger weather-related performance benefiting LFL by +c. 6%, partly offset as expected by c. 2% impact from discontinuation of showroom installation services. 
• Screwfix sales up 9.6%. LFL +4.5% with 4 new outlets opened in the UK during Q1.

FRANCE 

• Total sales -3.4% (LFL -3.7%).
• Castorama sales -2.4%. LFL -2.4% reflecting a positive start to the year, offset by transformation-related activity.
• Brico Dépôt sales -4.5%. LFL -5.1% largely reflecting the proactive reduction of low margin special promotional activity.  

OTHER INTERNATIONAL

• Total sales in Poland+7.4%. LFL +6.2% reflecting the continued good performance of unified & unique ranges, and despite the loss of one further Sunday of trading per month.
• Total sales in Romania+10.1%. LFL +24.6% reflecting strong performance of unified & unique ranges. The integration of Praktiker is progressing well with all stores now rebranded as Brico Dépôt.

INSIGHT & ANALYSIS - STEVE COLLINGE

Bearing in mind the soft comparable numbers for 2018, the good weather over Easter 2019 and the expected positive impact from the harmonised outdoor ranges, this is nothing short of a poor  Q1 performance by Kingfisher. With Wickes having delivered a like for like sales increase of 10.5% and from what we know, similar performance from Homebase, for B&Q to be only +2.8%, you can only assume that share has been lost to their competitors. Even the Screwfix numbers look weak at like-for-like +4.5% (total +9.6%), compared to the recent Toolstation results at like-for-like +19.1% (total +25%). France looks even worse with uncomfortable declines at both Castorama and Brico.

Source: Insight DIY Team & Kingfisher Press Release.

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