22nd Jul 2020 09:07
(Alliance News) - Kingfisher on Wednesday reported strong second-quarter trading figures following a good e-commerce performance and the phased reopening of stores in France and the UK as lockdown measures eased.
For the second quarter, ended July 18, group like-for-like sales were up 22% but year-to-date, they remain down 3.7%.
The DIY retailer said that based on the strong sales seen to date in the second quarter, combined with cost reductions, it anticipates its half-year adjusted pretax profit to be ahead of the prior year. The retailer posted interim pretax profit of GBP245 million last year.
"While we are entering the second half with a favourable trading backdrop, second half visibility remains low given uncertainty around Covid-19 and the wider economic outlook. As such, no specific financial guidance is provided for financial 2021," the company said.
Kingfisher added: "The operational and financial actions we have taken, together with the strong demand for home improvement we are currently seeing, give us a sound footing in the current crisis and beyond."
"Kingfisher's unscheduled update adds to the view that the new management team is already having a positive effect on the group's performance," commented analysts at Davy. "The good momentum in sales has persisted into July and adjusted H1 profits will be better than anticipated. The full repair of Kingfisher will take time but early signs are encouraging."
Kingfisher shares were up 9.9% at 247.40 pence each on Wednesday morning in London. They are up 14% so far in 2020.
By Greg Roxburgh; [email protected]
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