// Kingfisher cuts £10m from upper end of its profit guidance
// Full-year adjusted pre-tax profit would now come within the range of £730m to £760m
Kingfisher has slashed £10 million from the upper end of its profit guidance as it struggles with rising wages and energy bills.
The DIY retailer, which owns B&Q and Screwfix in the UK, said full-year adjusted pre-tax profit would now come within the range of £730 million to £760 million.
It came as Kingfisher posted an uptick in sales during the three months to October 31. Total group sales increased by 1.7% to £3.26 billion on a constant currency basis, while like-for-likes rose 0.2%. Like-for-likes were up 15.3% on pre-pandemic levels.
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In the UK and Ireland, total sales rose 0.1% year on year in constant currencies, but like-for-likes dropped 2.3%.
At B&Q, total sales were down 2.7% during the quarter, while like-for-likes fell 3.5%. Screwfix recorded a 4.9% rise in total sales, but like-for-likes slipped 0.5%.
Kingfisher’s UK and Ireland division was its only market to suffer a like-for-like decline during the period.
The group said it is seeing resilience in outdoor and “big-ticket” category sales trends amid the cost-of-living crisis.
It also said that it had effectively managed both rising inflation and supply chain pressures and revealed it was back to pre-pandemic levels for in-store product availability after supply chain issues had previously left gaps on its shelves.
“Our sales trends continued to be resilient, with like-for-like sales 15.3% ahead of pre-pandemic levels in the quarter,” Kingfisher chief executive Thierry Garnier said.
“This was supported by continued market share growth, including strong gains at Screwfix, TradePoint and Castorama Poland.
“While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency. DIFM and trade activity also continues to be well supported by robust pipelines for home improvement work.
“Competitive pricing remains a priority. With our customers facing rising living costs, we are determined to make home improvement affordable and accessible – particularly through our own exclusive brands which represent 45% of our sales.
“While we continue to be vigilant against macroeconomic uncertainty, we remain confident in both the resilience of our industry and in continuing to grow ahead of our markets.”
