22nd Nov 2023 08:59
(Alliance News) - DIY retailer Kingfisher PLC on Wednesday said sales declined in the third quarter, as it lowered its full year guidance.
The B&Q-owner said sales in the third quarter ending October 31 declined 2.1% to GBP3.24 billion, from GBP3.26 billion a year ago.
In UK & Ireland, sales amounted to GBP1.60 billion during the quarter, up 3.3% year-on-year from GBP1.55 billion.
However, the growth in the UK & Ireland was more than offset by an 8.7% decline in French sales to GBP1.03 billion, from GBP1.10 billion. Sales in Other International fell 3.7% to GBP608 million, from GBP621 million a year ago.
The firm noted that it opened four Screwfix stores in France during the quarter, as well as launching Screwfix online in six new European markets.
Looking ahead, the company said it expects adjusted pretax profit of around GBP560 million, compared with GBP758 million a year ago.
Chief Executive Thierry Garnier said: "Our UK banners performed well in Q3, with B&Q, TradePoint and Screwfix growing sales and market share. In France, our performance was impacted by a weak retail market, as well as a delayed start to insulation, plumbing and heating sales - to which Brico Depot is more heavily weighted - due to unusually warm autumn weather, and strong prior year comparatives in these categories."
"As we move into 2024, we are focused on what is in our control. First, a continued focus on growing market share in the UK, France and Poland with delivery of our strategic growth initiatives."
"On the medium-to-longer term outlook, we remain very positive for home improvement growth in our markets, and our ability to grow ahead of our markets," Garnier added.
Kingfisher shares fell 5.8% to 217.10 each on Wednesday morning in London.
By Harvey Dorset, Alliance News reporter
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