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Kingfisher profits to reach top end of forecast after strong Q3

The B&Q owner said its e-commerce sales performed particularly well in the period, with a two-year growth of 133%

Kingfisher believes its full-year profit will be at the top end of guidance after welcoming a strong sales performance in its third quarter of trading, with positive results seen across both its retail and trade channels on a two-year basis.

Two-year LFL sales were up by 15% in the period, as the group also reported a growth in footfall and average transaction value. 

The B&Q owner said its e-commerce sales also performed strongly in the period, with a two-year growth of 133%. Its online sales now account for 16% of total group sales. 

In addition, the group noted it had seen “effective management” of product availability, logistics and inflation pressures amid the current supply chain and inflationary pressures seen across the globe. 

Such measures, as well as an ongoing investment into its online business, have seen the group grow its market share over the period. 

Looking ahead, the group said it had made a strong start to its fourth quarter of trading, with Q4 21/22 LFL sales to 13 November up by 13.2% on a two-year basis.

At the moment, it expects its H2 sales to “be towards the higher end” of what was previously expected. It also expects its full-year profit to be on the higher end of its previous guidance of £910m to £950m. 

Thierry Garnier, CEO, said: “Kingfisher has delivered another successful quarter, with 2-year LFL sales growth of 15% and strong growth across both retail and trade channels, and across all categories. 

“These are even stronger sales trends given the backdrop of an increasingly ‘normalised’ consumer spending environment. Demand remains supported by what we believe are enduring new industry trends, including more working from home.”

He added: “We continue to grow our market share, driven by strong execution of our new strategy. We are pushing forward with investments in key areas of the business to drive long-term growth, including further enhancements to our e-commerce proposition and Screwfix’s launch in France. 

“Since the start of this year we have maintained, and in many cases improved, our product availability, which is amongst the best in our industry. This has supported our market share gains and allowed us to upweight promotional initiatives in the quarter. We have also continued to manage inflation pressures effectively, while retaining highly competitive pricing.”

In addition, Garnier noted that the final quarter has witnessed a “positive momentum” so far, adding that “overall, with strong execution and supportive new long-term trends for our industry, we remain confident of continued outperformance of our markets”.

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