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Kingfisher, owner of leading brands including B&Q and Screwfix, reports Q1 total sales down 0.4% (-4.2% LFL) and retail profit of £114 million.
The owner of B&Q has seen a nearly 30% fall in profits in Q1. Kingfisher Plc argue that Sales improved at the end of the quarter, following a return to more normal weather patterns.
Ian Chesire, Kingfisher’s chief executive, said that “Market conditions have remained challenging in the first quarter compounded by the effects of an early Easter and unseasonably cold weather across Europe. As a result, general footfall was down and demand for outdoor maintenance, gardening and leisure products was adversely affected for a second year running.
“These impacts were particularly acute in March which resulted in that month accounting for the vast majority of the quarter’s profit decline. However, our performance towards the end of the quarter was encouraging following a return to more normal weather patterns” Mr Chesire said.
B&Q UK & Ireland’s total sales declined by 5.7% to £913 million (-5.6% LFL) in line with lower footfall driven by the colder temperatures. Sales of outdoor seasonal products, which can represent up to 30% of total Q1 sales, were down over 10%. Sales of building products were also impacted by the cold weather. In the showroom category, bathroom sales were down, in a weak, price-aggressive market.
Company results indicate that kitchen sales delivered a solid performance. Sales of indoor decorative products also fared better as customers switched some of their home improvement activities indoors.
The company argues that “Looking ahead, we still have our key summer season to come and we are ready to capitalise on any improvement in conditions during this peak trading period” and that they “will continue to focus hard on our margin and cost initiatives helping us to reinforce our value credentials with customers during these challenging times”.
In positive contrast to B&Q, Screwfix grew total sales by 12.6% (+1.7% LFL) to £155 million, in an improving smaller tradesman market. The continued roll out of new outlets and the successful introduction of a mobile ‘click, pay & collect’ offer last year, with eight outlets were opening during Q1, taking the total to 283.
