Europe’s biggest DIY retailer revealed group like-for-like sales fell 5.5 per cent in the fourth quarter to January 31, while total group sales climbed 11 per cent to£2.3bn – equivalent to a 0.3 per cent decline on a local
currency basis.
At the UK division, like-for-likes slipped 6.8 per cent and total sales dropped 4.2 per cent. Flagship B&Q’s like-for-likes dropped 5.9 per cent, while sales declined 5.5 per cent to£825m.
Kingfisher reported sales of big-ticket items such as kitchens were up on the last quarter, helped by factors such as the collapse of rivals including MFI. Promotions hit gross margins by£17m, but were offset by cost savings.
Sales at the French division climbed 2.1 per cent on a local currency basis to£937m, with like-for-likes down 2.9 per cent.
Polish sales jumped 16.2 per cent and like-for-likes rose
5.5 per cent, following a 10.1 per cent lift in the third quarter.
Like-for-like sales in China slumped 31.2 per cent
Group chief executive Ian Cheshire said: “We continued to take share in our major markets and have managed our cash flow in what was a particularly difficult time for consumers.
“Adopting a vigorous and prudent approach to costs and cash at the start of the year enabled us to meet key financial targets, including our target for net debt.”
Teathers analyst Mark Photiades remained cautious about the outlook for Poland, “given the recent sharp slowdown in GDP growth and the rapid rise in unemployment”.
But he added: “Kingfisher’s brands are likely to emerge from the downturn in a stronger
competitive position and the group’s property asset backing
is significant.”
ING’s Peter Brockwell noted: “A better than expected performance from B&Q in the UK was offset by a worse than expected performance from France and China.” However, he views B&Q as a “key beneficiary of sector consolidation as capacity exits the sector”.
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