Kingfisher lowers profit guidance amid slight sales drop
Kingfisher did open four new Screwfix stores in France whilst also rolling out Screwfix online to six new European markets
Kingfisher has lowered its profit guidance for the year after it saw its sales slip 2.1% to £3.2bn for the three months ended 31 October 2023.
The company’s sales fell 2.7% on a constant currency basis and it now expects its full-year profit before tax to end around £560m down from £590m.
Kingfisher performed well in the UK and Ireland market seeing sales rise 3.3% up to £1.6bn.
B&Q posted sales of £946m, up 1%, while Screwfix posted sales of £651m, an increase of 6.8%.
The company saw its biggest downturn in the French market with sales declining 8.7% to £1.03bn.
It put this down to underperformance at Brico Dépôt due to the significantly higher weighting of building materials.
Kingfisher did open four new Screwfix stores in France whilst also rolling out Screwfix online to six new European markets.
CEO Thierry Garnier said: “Our UK banners performed well in Q3, with B&Q, TradePoint and Screwfix growing sales and market share. In France, our performance was impacted by a weak retail market, as well as a delayed start to insulation, plumbing and heating sales – to which Brico Dépôt is more heavily weighted – due to unusually warm autumn weather, and strong prior year comparatives in these categories.
“In Poland we are seeing early signs of recovery in the trading trend, against an incrementally more positive consumer and economic backdrop. Reflecting the weakness of the French market, and notwithstanding our proactive cost actions, we have lowered our group profit guidance for the full year.”
He added: “We continue to focus on our execution and driving our strategy forward. Our online marketplaces are growing rapidly, with B&Q’s marketplace reaching 35% of its e-commerce sales in October.
“Screwfix has continued its international expansion, by launching as a pure play online retailer in six new European countries, and opening four new stores in France in the quarter. We also continue to harness AI and data to support sales, profit and cash, including by growing our retail media proposition across the group.”
