LONDON (ShareCast) - (Sharecast News) - DIY group Kingfisher said it expected interim pre-tax profits to be higher as strong demand continued across its markets after the lifting of coronavirus lockdowns, but withheld guidance due to continued uncertainty.
The B&Q owner said group second quarter like-for-like sales to July 18 rose 21.6%. For the year to the same date they were down 3.7%.

"Based on the strong sales seen to date in the second quarter, combined with cost reductions benefiting the first half (some of which are non-recurring), the company anticipates its half year adjusted pre-tax profit to be ahead of prior year," Kingfisher said on Wednesday.

"While we are entering the second half with a favourable trading backdrop, second half visibility remains low given uncertainty around Covid-19 and the wider economic outlook. As such, no specific financial guidance is provided for full year 20/21."

Group online sales soared by more than 200% in May and June as people stuck in lockdowns across Europe took to home improvements with sales of garden plants, compost, fence panels, jet washers and painting and decorating products particularly strong. The trend was matched by a similar growth in France, Romania, Spain and Portugal.

Kingfisher said like-for-like sales across the UK and Ireland - where it also owns Screwfix - jumped 25.9% last month, while sales leapt 33% in France, where it trades as Castorama and Brico Depot.

Sales have continued to remain strong in July, with UK and Ireland like-for-like growth of 19.6% in the week to July 18 and group online growth of 183.3%.

AJ Bell investment director Russ Mould said the lockdown home repair trend was "the tailwind Kingfisher has desperately needed to get back on its feet after such a long period of struggling".

"Anyone stuck at home will have been staring at their four walls and perhaps wondering why they've lived with peeling paint, grubby skirting boards and rotting garden sheds for so long," he said..

"Shops like Kingfisher's B&Q have been natural choice for households to go and pick up bits and bobs to make their home look smarter. The large sized stores in Kingfisher's estate will have also made it easier to adhere to social distancing measures, so really DIY companies have been a role model for how retail can work in the new world.

"The big question for Kingfisher is can it sustain the sales growth momentum? As more people return to work and lockdown measures start to ease, consumers' focus could easily shift away from the home and back to the lifestyle they once enjoyed."

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