The parent company of Screwfix and B&Q has released its first quarter trading results, where it recorded sales of £3.3bn.
Retail giant Kingfisher said there was resilient performance in core and big-ticket categories, which make up 82% of sales. The company recorded improved trading since early April and better seasonal sales.
The company said that B&Q had "good performance" in the UK and Ireland, despite the "impact of the weather" on seasonal sales. It reported strong market share gains and positive LFL at the Yeovil-headquartered home improvement and DIY retailer Screwfix, with trade customers continuing to see strong pipelines.
The firm opened two Screwfix stores in France and is targeting up to 85 new stores across the UK, Ireland and France. As a result the company is predicting a £634m profit by the end of the year in line with expectations.
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Kingfisher blamed wet weather for lower sales of items like garden furniture and barbecues in Britain and France. It said seasonal categories, that is those affected by weather, were 11% lower in the period, but said improving trends in April gave it confidence it would meet forecasts.
Thierry Garnier, chief executive, at Kingfisher said: “As we move through our key trading season, we are pleased to see that sales in our core and ‘big-ticket’ categories, which make up over 80% of our total sales, are showing continued resilience. The unusually poor spring weather in the UK and France affected our seasonal sales in the quarter, impacting demand for items such as garden and outdoor products. We have however seen an improvement in trading since early April, and anticipate a release of some pent-up demand as the weather continues to improve. Our inventory remains healthy and, in aggregate, is reducing in line with our expectations.
“We continue to execute our strategy at pace, making good progress across all our key priorities. Screwfix is trading well and seeing particularly strong demand from trade customers, with total sales up 6.5%. The business continues to drive its store expansion plans in the UK, Ireland and France. E-commerce sales were another highlight in the quarter, up 4.7%. One of the drivers of this is the continued success of B&Q’s marketplace, which reached 27% of B&Q’s online sales in April, a year after its launch."
Since 2022, high inflation and big energy bills plus rising interest rates have put a squeeze on consumer spending across its UK and European markets.
Kingfisher said it expected to see lower cost inflation in the second half of this year as raw material prices and freight costs ease.
Mr Garnier added: “Across the Group, we are maintaining a sharp focus on competitive pricing, while balancing inflationary pressures. With the continued easing of raw material prices and freight costs, we expect to see lower product cost inflation in H2.
“We are comfortable with market expectations for the business this year, and confident in delivering growth ahead of our markets, strong cash generation, and higher returns to shareholders over the medium-term.”
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