LONDON - Kingfisher (LON:KGF) plc, the international home improvement company, announced its third-quarter sales results, showing steady performance with total sales remaining flat at £3.2 billion in constant currency and a slight reported decrease of 0.6%. Like-for-like (LFL) sales were down by 1.1%, with the company's banners in the UK, France, and Poland performing in line with or ahead of their respective markets.
In the UK & Ireland, sales increased by 1.3% on a constant currency basis, driven by gains at Screwfix and TradePoint. However, B&Q experienced a modest decline. The French market saw a 4.2% drop in sales, with both Castorama and Brico Dépôt facing lower sales trends in October due to weak consumer sentiment and adverse weather. Despite this, the company's performance remained aligned with the market. Poland reported a sales increase of 3.7% but a slight LFL decrease of 0.4%.
The company highlighted solid underlying trading in August and September, but acknowledged a weak market and consumer environment in the UK and France in October, influenced by uncertainty related to government budgets in both countries. Kingfisher's core categories, representing 69% of sales, showed improved trends, driven by repair, maintenance, and renovation activity. However, 'big-ticket' categories, which make up 16% of sales, continued to be soft, though signs of improvement were noted.
Kingfisher's e-commerce marketplace grew by 45%, contributing to an increase in e-commerce sales penetration to 18.8% in Q3. Additionally, the company's trade sales penetration reached 16.5% across the group, excluding Screwfix.
Looking ahead, Kingfisher expects the near-term market outlook to remain uncertain but remains confident in its business model and ability to manage retail prices, costs, and cash. The company has revised its full-year profit guidance range to approximately £510 million to £540 million, from a previous range of £510 million to £550 million. The free cash flow guidance remains unchanged.
The company's Chief Executive Officer, Thierry Garnier, stated that Kingfisher is strongly positioned to benefit from future improvements in the home improvement sector and is making progress against its strategic and operational objectives.
The information in this article is based on a press release statement from Kingfisher plc.
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