Kingfisher Q3: LFL Sales Up 17.4%

Kingfisher plc ('Company', 'Group' or 'Kingfisher') is today providing its Q3 20/21 sales, together with an update on how it continues to manage the impact of COVID-19 on its business. 

Key points

·    Continuing to make good progress against 'Powered by Kingfisher' strategic priorities

·    Q3 20/21 total Group sales of £3.5 billion, up 17.6% in constant currency; Group LFL⁽¹⁾ sales up 17.4%

o Strong performance across all retail banners and categories, with growth in overall footfall and average transaction value

o Q3 Group e-commerce sales up 153%; now 17% of total Group sales (Q3 19/20: 8%)

o Click & collect sales up 216%, accounting for 77% of Group e-commerce sales (Q3 19/20: 61%)

·    Q4 20/21 Group LFL sales⁽²⁾ (to 14 November 2020) up 12.6%, largely reflecting the impact of more recent temporary lockdown measures

·    All Kingfisher stores are currently open; remain committed to meeting the essential needs of customers safely and ensuring colleague safety and wellness

·    Repaid £23 million previously received under UK Government Job Retention Scheme

·    Disposal of Castorama Russia completed for consideration of c.£73 million⁽³⁾

UK & IRELAND

Total sales +21.5% (LFL +19.9%).

·    B&Q sales +23.9%. LFL +24.0% reflecting strong demand in all categories, in particular outdoor. LFL sales of weather-related categories were up 45.2%. LFL sales of non-weather-related categories, including showroom, were up 18.5%. The new kitchen range continues to perform well, and installation services will be reintroduced into all UK stores by January 2021.

·    Screwfix sales +17.4%. LFL +12.8% reflecting stronger demand from trade customers. The business continued to strengthen its overall customer proposition, including ongoing investments in price. During Q3, 17 new outlets were successfully opened in the UK and four in the Republic of Ireland.

Trading since 1 August 2020

LFL sales by month during Q3

Thierry Garnier, Chief Executive Officer, said: 

"We achieved strong sales growth in Q3 across all retail banners and categories, with higher footfall and average transaction value. Our growth was supported by strong market demand, as consumers spent more time in their homes and focused on improving them. 

"At the same time, we have made good progress against our 'Powered by Kingfisher' strategic priorities - the early benefits of which are enabling us to meet the current strong demand, both in-store and online, and grow our share in key markets. I am thankful for the way in which our teams continue to respond to the immense challenges of doing business in today's environment.  

"During the period we also furthered our commitment to supporting our communities. We continued to create jobs in our stores; we continued to make donations to charity partners and health authorities; and earlier this month we repaid £23 million received in the first half of the year under the UK government's furlough programme. While there remains considerable uncertainty around COVID-19, we are confident in our ability to operate safely, to serve our customers, to look after our colleagues, and to protect our business.

"Overall, we believe that the renewed focus on homes is supportive for our markets. Furthermore, we are confident that the strategic and operational actions we have taken so far are helping us to build a strong foundation for long-term growth." 

Outlook

While the strength of our Q3 performance was reassuring, uncertainty over COVID-19 and the impact of temporary lockdown restrictions in most of our markets continue to limit our near-term visibility. 

Overall, we believe that the renewed focus on homes is supportive for our markets. Furthermore, we are confident that the strategic and operational actions we have taken so far are helping us to build a strong foundation for long-term growth. 

In relation to costs, we anticipate that FY 20/21 adjusted profit before tax will include c.£175 million of temporary cost savings (including government support measures and other non-recurring cost savings), net of any one-off COVID-related costs.

View the full presentation here.

Source : Kingfisher

Image : Chris Warham / shutterstock.com

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