Kingfisher expects profits at top end of range after strong fourth quarter

The retailer said that in the six weeks of the period so far to January 6, 2021, group like-for-like sales were up 16.9%, while ecommerce sales ballooned 150%. 

While Kingfisher noted that sales in November slowed due to store closures and issues in France, growth in December returned, driven by strong results in particular from Castorama and Brico Dépôt. 

The UK and Ireland also performed strongly in the quarter, and Kingfisher said Screwfix is on track to reach £2bn in sales by the end of the financial year. 

Based on this trading so far, Kingfisher said it was “comfortable with the top end of the range of current sell-side analyst estimates for FY 20/21” of £742m profit before tax. 

Kingfisher said it expected to incur £85m of non-recurring cost savings in the period, £45m of which were coronavirus-related costs.

The retailer also confirmed it would forgo all business rates relief for the 2020/21 tax year, totalling around £130m in rebates. 

Despite growing coronavirus cases in the majority of the countries it operates in, Kingfisher said its 1,380-strong store estate remains open for in-store purchasing and click and collect “under strict social distancing and safety protocols”.

Chief executive Thierry Garnier said: “The safety of our customers and teams remains our first priority while we fulfil the essential needs of our customers.

“We will continue to support our colleagues during these most difficult times and I want to express my sincere appreciation for all our teams as they continue to operate in such a challenging environment.

“While the strength of our Q4 trading, to date, is reassuring, uncertainty over Covid-19 and the impact of lockdown restrictions in most of our markets continue to limit our visibility.

“Longer-term, we are confident that the strategic and operational actions we are taking are building a strong foundation for sustainable long-term growth. We also believe that the renewed focus on homes is supportive for our markets.

“We look forward to providing a more detailed update within our FY 20/21 results on 22 March, 2021. In the meantime, I wish you all a happy and safe new year.”