Kingfisher’s Q3 Sales Decline, 3-Week LFL Sales Drop; FY Profit View Revised Down
Kingfisher, the home improvement retailer, just released its third-quarter sales report, and things are looking a bit down. Total group sales went down by 0.6%, landing at 3.22 billion pounds. Sales remained flat in terms of currency, but they dropped 1.1% on a like-for-like basis.
As for the current trading situation, the company mentioned that the fourth quarter has started with a bit of improvement compared to the third quarter exit rate. In the three weeks leading up to November 23, the Group LFL sales decreased by 0.5%.
Looking forward to the fiscal year, Kingfisher has revised its profit view, now expecting around 510 million pounds to 540 million pounds in adjusted profit before tax. This is slightly lower than the previously projected 510 million pounds to 550 million pounds. The company cited uncertainty in the near-term market outlook.
In terms of sales breakdown, UK & Ireland sales saw a modest increase of 1.2% on a reported basis, reaching 1.62 billion pounds. Sales in France, on the other hand, saw a significant drop of 6.4%, totaling 967 million pounds. Other International sales grew by 4.7% to 637 million pounds.
Thierry Garnier, the Chief Executive Officer, pointed out that while there was an improvement in performance in August and September, this was offset by increased consumer uncertainty in the UK and France in October. However, there are signs of improvement in sales across core categories, supported by repairs, maintenance, and home renovations. The company did note that sales of higher-priced items remained soft.
In conclusion, there’s a bit of a rough patch for Kingfisher in the sales department, but they are optimistic about the future and are working on strategies to improve their numbers. Let’s see how things play out for them in the coming months.
