12th May 2020 10:08
(Alliance News) - Kingfisher PLC's first quarter sales were battered by Covid-19, the DIY retailer reported, but almost all of its stores are operating again to some extent, including all but one of its B&Q sites in the UK.
In the three months to April 30, Kingfisher's total sales slumped 24%, or 25% on a like-for-like, constant currency basis.
It was period during which the pandemic began to gain a foothold in Europe, meaning some retailers were forced to close due to not providing essential services, while others, in the case of chains like B&Q, shuttered by choice.
UK & Ireland total sales were 15% lower year-on-year, with numbers showing a 22% sales slump in B&Q and a 0.1% decline at Screwfix.
In France, where Kingfishers operates Castorama and Brico Depot, total sales fell 42%. In Poland, sales fell 7.8% annually, and plummeted by 47% in Iberia.
In Russia sales were down 7.6%, and in Romania they rose 11%. Kingfisher's Romania and Russia subsidiaries ended their first quarter in March, the company noted.
"Having initially closed our stores in France and the UK, we have rapidly adapted how we operate to meet the essential needs of our customers safely during lockdown. We started by transforming our operations to meet a material increase in online transactions through our click & collect and home delivery services. We reconfigured our retail space and processes, allowing a phased and safe reopening of stores whilst preserving the social distancing and other health & safety protocols that are likely to be with us for some time," Kingfisher said.
Kingfisher added that over 95% of its sites are now operating again, be it through stores reopening or offering just a click & collect service only.
In the UK, all 683 Screwfix stores are offering click & collect only and 288 of the 289 B&Q stores are open again.
All 220 of Kingfisher's stores in France, the 81 in Poland and 35 in Romania are open again, while three of its stores in the Iberian peninsular have opened again, the trio of stores all in Portugal.
The company added: "We have also taken significant actions throughout the business to reduce costs and protect cash, in part supported by governments. Our current cash balance provides us with sufficient financial headroom based on assumptions of a prolonged period of reduced sales."
Kingfisher said it initially furloughed about 50% of its workforce, though this number has been coming down since it reopened stores again.
Discretionary spend, including advertising and marketing as been cut, Kingfisher said, and it saved GBP157 million by not paying a final dividend. It said it has total liquidity of GBP2 billion, including an additional revolving credit facility of GBP250 million and state-backed funds in the UK and France.
Kingfisher shares were 4.8% higher at 170.25 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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