22nd Nov 2016 10:24
LONDON (Alliance News) - Kingfisher PLC on Tuesday reported growth in sales in the third quarter of its financial year, boosted by the depreciation of sterling against the euro, and it said it is on track with its five-year transformation plan.
Kingfisher, which operates B&Q and Screwfix in the UK and Castorama and Brico Depot in Europe, said total group sales rose by 12% year-on-year in the quarter to the end of October, with 2.8% growth in the UK & Ireland, 16% growth in France and 25% growth in its Other International segment, which includes Poland, Russia and Spain.
On a like-for-like basis, which is at constant exchange rates, total group sales rose by 1.8%, with 5.8% growth in the UK & Ireland, 4.7% growth in Other International, but a 3.6% decline in France.
Within the UK & Ireland, sales growth was driven by a continued strong performance at Screwfix, where sales rose by 23% and like-for-likes were up 13%.
This offset difficulties in B&Q, which has been hit by store closures as Kingfisher works to rebalance the high number of B&Q stores it runs against the Screwfix brand.
B&Q sales decreased by 3.3% in the period, and Kingfisher has now shuttered 59 of the 65 stores earmarked for closure. Like-for-like sales, however - which only include sales generated by stores open during both periods, discounting any store openings or closures - grew by 3.5%.
In France, sales at Castorama grew by 15% while Brico Depot sales rose by 18%, boosted by the weakening of sterling against the euro. On a like-for-like basis at constant exchange rates, however, sales fell by 3.8% at Castorama and by 3.3% at Brico Depot.
Kingfisher's French business has been struggling for some time now, which the company has blamed on weak consumer confidence and a difficult housing market.
Kingfisher added its five-year transformation plan remains on track. The plans has seen the group roll-out a new IT system, close underperforming stores and open new outlets and restructure its management team in a bid to improve performance.
"We continue to make good progress on our strategic milestones in the first year of our five year ONE Kingfisher transformation, and remain on track. In addition, we are gearing up for next year when the level of transformation activity will significantly increase. We remain confident in our ability to deliver our ambitious plan, based on always putting customer needs first, supported by the expertise and energy of our colleagues," Chief Executive Veronique Laury said in a statement.
Shares in the DIY retailer were trading down 2.8% at 359.20 pence on Tuesday following the news.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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