Home improvement group Kingfisher saw an uplift in first-quarter sales after good demand for seasonal and big-ticket items boosted performance at B&Q.
Over the three months to 30 April, total group sales rose by 2.2% on a constant currency basis to £3.31bn, with like-for-likes increasing by 1.8%.
At B&Q, like-for-like sales surged up 7.9% as the favourable Spring weather saw shoppers snapping up outdoor items. It also saw a second quarter of underlying growth in big-ticket sales, supported by recent range reviews.
Meanwhile, the retailer noted that its marketplace penetration reached 45% as it focused on onboarding international vendors.
During the period, B&Q completed the conversion of eight stores acquired from Homebase, with six now open and two set to launch by the end of this month.
Like-for-like sales at Screwfix grew by 2.9%, boosted by an increase in product range for trade customers and the continued growth of its rapid click & collect and delivery services.
Meanwhile, like-for-like sales in France, where Kingfisher operates Castorama and Brico Dépôt, declined by 3.2% in “challenging market conditions”.
Chief Executive Thierry Garnier commented: “We have made a good start to the year with underlying sales growth of 3.1%, market share gains in all key regions and further progress in our strategic priorities.
“Our UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce.”
He added: “France delivered sequential improvement, outperforming challenging market conditions, while Poland, as expected, experienced short-term volatility due to geopolitical factors.”
Reiterating its full-year guidance, Kingfisher stated that it expects adjusted pre-tax profit to come in at around £480m to £540m.
Garnier concluded: “It is still early in the year, and consumer sentiment remains mixed across our markets.
“We are focused on executing our strategic growth priorities, maintaining discipline on margin and costs, and driving shareholder returns. We are confident in delivering our full year guidance.”
NAM Implications:
- Onboarding international vendors to a retailer’s online activity can patently add ‘infinity’ to its product portfolio.
- (Witness Amazon’s 550m SKUs…)
- Allowing the retailer to focus on customer-centricity…
- …and meeting their demand, 100%.
- A high hurdle rate…
- …but higher for rivals.
