Kingfisher sees sales dip as UK stores struggle on
B&Q owner Kingfisher said yesterday it was on track to meet first-half profit expectations, with cost cutting and business improvement measures offsetting a dip in underlying sales.
The firm, which runs Castorama and Brico Depot chains in France said sales at stores open at least a year fell 0.8 per cent in the 10 weeks to 10 July its fiscal second quarter.
That compared with analysts’ forecasts for a broadly flat outcome and follows a 1.8 per cent drop in the first quarter. Underlying sales in Britain fell 4.4 per cent, hit by a drop in demand for kitchen, bathroom, bedroom and building products as cautious consumers shy away from large purchases. But that was partly offset by a 2.6 per cent rise in underlying sales in France and a 0.8 per cent increase in other international markets, which include Poland and China. Kingfisher said gross profit margins rose in both Britain and France, lifted by cost cutting
“While we remain cautious about the outlook for consumer spending, well established self-help initiatives leave us well-placed to continue our good progress over the balance of the year,” chief executive Ian Cheshire said.