19th Nov 2021 08:30
(Alliance News) - Kingfisher PLC on Friday said sales remain above pre-pandemic levels, despite a boost in demand home improvement products waning.
Shares in the company were 3.9% lower at 324.20 pence each in London on Friday morning. It was the worst blue-chip performer in early trade.
Kingfisher, which owns the B&Q DIY retail brand and the Screwfix hardware supplies chain, has been a beneficiary of the pandemic, as people looked to rejuvenate their homes during lockdowns.
As lockdown measures have eased, Kingfisher's sales have too. However, it predicts its annual profit performance to be at the upper end of guidance.
Total sales in the third quarter ended October 31 were GBP3.25 billion, down 6.3% on a year ago. The like-for-like decline was 2.4% on an annual basis at constant currency, but on two years earlier - so in comparison with pre-virus levels - growth was 15%.
Reported UK & Ireland third quarter sales were 2.1% lower, with a decline at B&Q offsetting progress at Screwfix. In France, where it owns Castorama and Brico Depot, sales fell 9.5%.
Kingfisher reported "resilient" demand against very strong prior year comparatives. It has also made a good start to the final quarter of the year. On a two-year basis, fourth quarter like-for-like sales are up 13%.
Kingfisher's full-year adjusted pretax profit guidance range is GBP910 million to GBP950 million. It expects adjusted pretax profit at the top end of this range.
Second half sales, meanwhile, are also set to be at the upper end of forecasts. Kingfisher expects sales in its second half to fall between 7% and 3% annually on a like-for-like basis. This would represent growth of 9% to 13% on pre-virus levels.
By Eric Cunha; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Kingfisher