Kingfisher, the parent company of the UK’s B&Q DIY chain and other home improvement brands, has raised its profit forecast for the year despite a drop in sales at B&Q. In the second quarter, B&Q’s like-for-like sales—meaning sales compared to the same period last year—fell by 1.8%, with a notable decline of 8.1% in sales of big-ticket items. This drop was mainly due to reduced demand for bathroom products. However, this was an improvement from the first quarter, when like-for-like sales had fallen by 4.1%. The recovery was partly driven by heatwaves, which increased demand for seasonal items such as garden tools and outdoor furniture.
The company’s Screwfix brand, which focuses on professional tradespeople and offers a wide range of tools and equipment, saw strong performance in the second quarter, with a 7.1% rise in sales. This helped to lift overall same-store sales in the UK and Ireland by 1.6% for the quarter and 0.4% for the first half of the year. Kingfisher also operates other home improvement brands such as Brico Depot and Castorama across Europe, which contributed to the company’s broader performance.
For the six months ending July 31, Kingfisher reported a 9.9% increase in underlying pre-tax profits to £404 million. This figure was supported by a one-time £14 million refund related to UK business rates, which are local taxes paid by businesses. Statutory pre-tax profits, which include one-time items, rose even more sharply, by 18.4%, to £400 million.
Based on this improved performance, Kingfisher has raised its full-year underlying pre-tax profit guidance to between £595 million and £635 million, up from the previous range of £565 million to £625 million. Thierry Garnier, the outgoing chief executive, said the company’s steady results and strategic progress give confidence to increase the forecast. Garnier, who has led the company for nearly seven years, plans to step down to join Ahold Delhaize, a Dutch retail company. However, he will remain in place until a successor is found.
Kingfisher Raises Profit Forecast Amid Mixed Retail Sales Performance
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