Kingfisher shifts profit guidance after mixed third quarter
By Benjamin Chiou
Date: Monday 25 Nov 2024
(Sharecast News) - B&Q and Screwfix owner Kingfisher has nudged down the midpoint of its annual profit guidance after a mixed third quarter, in which group like-for-like sales edged lower.
The company, which also owns the Castorama and Brico Dépôt chains in France as well as other outlets across Europe, said full-year adjusted pre-tax profit is expected to come in between £510m and £540m, compared with previous forecast range of £510m to £550m.
Sales in the three months to 31 October totalled £3.22bn, down 0.6% on a reported basis and down 1.1% in like-for-like terms, with chief executive Thierry Garnier citing "increased consumer uncertainty" across the UK and France in October, which offset an improved performance in August and September.
UK and Ireland LFL sales were up 0.4% as a 0.6% drop at B&Q was offset by a 1.8% increase at Screwfix, with Kingfisher claiming the Autumn Budget which weighed on consumer sentiment, along with wetter than normal weather last month.
Across the Channel, LFL declines at both Castorama (-4.7%) and Brico Dépôt (-3.7%) meant LFL sales at the French division were down 4.3%.
Elsewhere, international LFL sales increased 0.5% with a strongly performance in Iberia (+6.6%) outweighing falling sales in Poland (-0.4%) and Romania (-2.0%).
Looking ahead, Garnier said recent political and macro developments have "layered incremental uncertainty onto the near-term outlook in our markets", though the group is positioned strongly to benefit from an expected inflection in DIY markets.
Trading in the fourth quarter so far has shown the LFL decline easing slightly to 0.5%.
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