Retail group Kingfisher, who own companies including B&Q and Screwfix, have seen a statory pre-tax profit increase of 10.2 per cent in the 26 weeks up to 3 August (up £401m from £364m for the same period last year) (Release).
CEO Ian Cheshire puts the increase down to better weather, commenting on the effect of bad weather on the first quarter.
Underlying consumer confidence remains weak in our major markets, so we continue to focus hard on our self-help initiatives to drive growth, margin and cost efficiencies.
Although B&Q sales are down -1.7 per cent like-for-like, Screwfix has been expanded, and Kingfisher is now operating 15 new stores in Romania - their first move into a new country for seven years.
Joe Rundle, head of trading at ETX Capital, comments:
In order to shift from this vulnerability, Kingfisher’s management must restore confidence by exploring other revenue streams such as bolder moves to expand outside of the European region.
One bright spot could be the ongoing boom in the construction/housing market as the pick-up in new home sales in the UK is likely to drive consumers into Kingfisher’s DIY chains.