DIY group Kingfisher, owner of B&Q, has warned of a tough second half in the UK but insisted its international presence and buying scale will enable continued growth.
The retailer posted adjusted interim profits up 6.2 per cent to£189.6 million on sales ahead almost 11 per cent to£4.77 billion. Like-for-likes rose 4.3 per cent across the group.
In the UK, B&Q’s sales rose 4.8 per cent – 2 per cent like for like – to£2.1 billion. Retail profit fell nearly£5 million to£77.8 million, but the retailer bore£15.8 million additional costs because of its store revamp programme. The performance beat analysts’ expectations, however.
Group chief executive Gerry Murphy highlighted the fact that Kingfisher’s overseas stores now account for more than half of total sales and said the outlook was “generally positive” for the international arm.
He welcomed UK sales growth in a market that is “relatively week”, but warned: “We expect the second half to be tough as recent interest rate rises and uncertainty in financial markets affect customer behaviour.”
However, the ongoing revamp of stores, the launch of new products and services and a new advertising campaign meant “B&Q’s development plan is progressing well”, said Murphy.
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