Kingfisher Q3 Sales Decline, 3-Week LFL Sales Drop; FY Profit View Revised Down
Home improvement retailer Kingfisher plc (KGF.L) recently announced a slight decrease of 0.6 percent in its third-quarter total group sales from last year, totaling 3.22 billion pounds. Sales remained steady at constant currency levels, but experienced a 1.1 percent drop on a like-for-like basis at constant currency.
As the company looks ahead to the upcoming fiscal year, Kingfisher has adjusted its profit expectations, now anticipating adjusted profit before tax in the range of approximately 510 million pounds to 540 million pounds. This is a slight adjustment from the previous forecast of around 510 million pounds to 550 million pounds.
Despite these changes, Kingfisher remains cautiously optimistic about the near-term market outlook, recognizing ongoing uncertainties in the market.
In the UK & Ireland, sales saw a 1.2 percent increase on a reported basis, totaling 1.62 billion pounds, and a 0.4 percent increase on a like-for-like basis. On the other hand, sales in France experienced a decline of 6.4 percent to 967 million pounds, with a 4.3 percent drop on a like-for-like basis. Meanwhile, other international sales grew 4.7 percent to 637 million pounds.
Thierry Garnier, Chief Executive Officer of Kingfisher, acknowledged the challenges posed by consumer uncertainty in the UK and France, emphasizing improved performance in core categories supported by repairs, maintenance, and existing home renovations. While sales in larger ticket categories remained slow, signs of improvement are beginning to emerge.
As Kingfisher navigates the ever-changing market landscape, the company continues to focus on adapting to meet the evolving needs of its customers and the broader retail environment.
