Kingfisher suffers as DIY-ers take it easy
MORE than £600million was wiped from the value of Kingfisher yesterday as homeowners failed to make hay on DIY jobs while temperatures soared.
Shares crashed 8 per cent after the B&Q owner suffered a second quarter slowdown in demand for outdoor and seasonal products. Its businesses in France and Poland have been particularly badly hit.
Chief executive Sir Ian Cheshire was left scratching his head as to whether this was a short-term blip due to World Cup viewing or a further squeeze on European consumers. It also had a hard act to follow after good spring weather.
Trading in our second quarter was always expected to be more difficult, following this year’s weather-boosted first quarter
He said: “Trading in our second quarter was always expected to be more difficult, following this year’s weather-boosted first quarter.
However, our markets, notably in June, have been slower than anticipated particularly in France and Poland. We will know more by our interims in September having then traded through summer.”
Sales, stripping out new trading space, fell 1.8 per cent. UK and Ireland same-store turnover dropped 1.3 per cent while the decline was 2.2 per cent in France and 3.5 per cent in Poland.
