Total sales at the DIY and home improvement group climbed 4 per cent on a 13-week basis and like-for-likes slid 0.5 per cent. The international business performed well overall, although the UK and China remained challenging.
In the UK, B&Q sales were£874 million, up 0.2 per cent over the period. Like-for-like sales dropped 1.7 per cent. The results reflected the tough environment in the UK, but Kingfisher said this has been offset by good sales from the revamped stores and the introduction of new decorative, bedroom and flooring ranges.
Kingfisher chief executive Ian Cheshire said: “The outlook for this year for the UK is tough and our plans rely on self-help to deliver the bottom line, rather than expect a huge surge in sales. The search for a managing director of B&Q remains a top priority, but we’ll wait until we find the right person rather than rushing the search.”
In France, Kingfisher's sales climbed 4.3 per cent to£754 million and like-for-likes rose 1.1 per cent. The rest of Europe, including Poland, Spain and Russia, increased sales by 14.3 per cent to£315 million, on like-for-likes up 4.4 per cent. Poland performed particularly well, with like-for-likes up 12.1 per cent.
Sales at B&Q's Chinese stores declined 3.4 per cent to£122 million and like-for-likes dropped 7.5 per cent. Cheshire said: “Our trading in China has been affected by new government regulations on suppliers and also a dampening in the property market on new apartment sales. China is a key priority and I will be going out there in about 10 days to assess the market, but this doesn’t mean I am looking to exit it.”
Cheshire said this year the focus would be on three key areas: getting the right management teams in place, focusing on better cash returns, and how best to control cash. “We’re looking at opportunities for the management team to move to a single worldwide home improvement business and operate as a more integrated business,” he said.
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