Kingfisher, the parent company of B&Q and Screwfix in the UK, along with Castorama and Brico Dépôt across Europe, has reported a dip in sales attributed to a wet and cold Easter period. The home improvement retailer noted that like-for-like sales in the UK and Ireland fell by 0.9% during the three months from February to April. Within this figure, B&Q experienced a 4.1% decline, while Screwfix saw a 4.1% increase in revenue.
Overall group sales also decreased by 0.9% in the same period, with declines observed at Castorama and Brico Dépôt. Kingfisher blamed the adverse weather conditions around Easter for dampening consumer enthusiasm for seasonal products such as barbecues, garden furniture, and plants. These seasonal items account for approximately one-fifth of the company's total revenues.
B&Q also faced a decline in bathroom fixture sales, though this was partially offset by a 4.5% rise in kitchen sales following the introduction of new product ranges. The broader UK market for bathroom sales shrank by 2% in the first quarter, while the kitchen market remained flat. Kingfisher plans to invest further in its own-brand bathroom ranges later this year to capture more market share.
Despite these challenges, Kingfisher has maintained its full-year profit outlook, which has reassured investors. The company expects to achieve a pre-tax profit between £565 million and £625 million this year. This forecast drove its share price up by 3% on Tuesday, making it the top riser in the FTSE 100 index.
Thierry Garnier, Kingfisher's chief executive, commented: “We delivered a resilient start to the year, executing well and gaining market share against a soft market backdrop. While mindful of the consumer environment, we remain absolutely focused on delivering our strategy, disciplined gross margin and cost management, and consistent shareholder returns.”
Russ Mould, investment director at AJ Bell, offered his perspective: “Blaming the weather for weak trading is often seen in the ‘dog ate my homework’ category of excuses by the market, but the fact it has not forced any downgrades means Kingfisher has kept investors on side. Among the areas of positivity is the continued strong growth in the Screwfix business. Kingfisher, like several of its peers, is pursuing trade customers, who are often more reliable and consistent sources of revenue than ordinary consumers. That’s because materials and tools are not a nice-to-have for them but essential to their day job. This strategy is paying off in spades as the company makes market share gains. These sales could become increasingly important as pressures on consumer spending build, although as well as putting people off DIY projects, the do-it-for-me work on which its trade buyers rely may also suffer against a difficult backdrop.”
Kingfisher's sales to trade customers rose by 17%, excluding Screwfix, highlighting the growing importance of this segment.
