By Frank Prenesti
Date: Monday 16 Mar 2020
LONDON (ShareCast) - (Sharecast News) - DIY group Kingfisher said it had closed all 221 of its Castorama and Brico D?p?t stores in France until April 14 in line with government restrictions to combat the coronavirus pandemic.
The company on Monday said its 28 stores in Spain were also shut until March 29, as it warned there was significant uncertainty on sales and demand as the pandemic spread.
It added that it is taking "immediate and significant" actions to cut costs and protect its financial position.
This included reducing operating expenditures, stock and goods not for resale purchases, stopping all but essential capital expenditure, and making use of tax payment and other government relief measures.
Up to Saturday 14 March we have experienced no impact on demand from COVID-19.
The company said February group like-for-like sales were up +7.6%, or 2.3% excluding the leap year impact.
In the first two weeks of March up to March 14 sales continued to be positive with growth across all businesses within it core markets, strongly supported by internet sales.
"However, there is significant uncertainty on sales and demand as the outbreak spreads, and as central governments and businesses take action to contain and delay its impact," Kingfisher said.
The company added that it limited financial debt of ?136m at January 31 with total net debt of ?2.5bn.
"Given recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of Covid-19, we are not yet able to predict the impact...on our 2020/21 full year results," the company said.
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