Kingfisher, the owner of DIY chain B&Q, has reported a dip in sales for the first quarter, blaming a wet and cold Easter for putting customers off buying seasonal products such as barbecues and garden furniture. The company, which also owns Screwfix in the UK and Castorama and Brico Dépôt in Europe, said like-for-like sales in the UK and Ireland fell 0.9% in the three months to April.
B&Q sales dropped 4.1%, while Screwfix revenue rose 4.1%. Overall group sales were down 0.9%, with declines also at Castorama and Brico Dépôt. Seasonal products account for a fifth of the company's revenues. However, Kingfisher hopes to make up lost ground during the current heatwave.
Despite the dip, Kingfisher stuck to its full-year profit outlook, forecasting pre-tax profit between £565m and £625m. This cheered investors, driving its share price 3% higher on Tuesday, making it the top riser on the FTSE 100 index. Chief executive Thierry Garnier said the company delivered a resilient start to the year, gaining market share against a soft market backdrop.
Analysts noted that Kingfisher's focus on trade customers is paying off. Sales to trade customers rose 17%, excluding Screwfix. Russ Mould of AJ Bell said trade customers are more reliable than ordinary consumers, as materials and tools are essential to their jobs. He added that this strategy could become increasingly important as consumer spending pressures build.
