// Kingfisher upgrades its profit guidance after sales surge
// The retailer’s online sales almost tripled from May 1 to July 10 year on year
Kingfisher has upgraded its profit guidance after sales powered ahead of pre-Covid levels across its international markets.
The DIY retailer announced that adjusted pre-tax profit for the first half of its fiscal year would now be in the range of £645 million to £660 million, exceeding previous expectations of £580 million to £600 million.
In its second quarter to date, Kingfisher, which owns B&Q and Screwfix in the UK, reported a 22.3 per cent increase in like-for-like sales compared to the same period two years ago.
The retailer’s online sales nearly tripled from May 1 to July 10 compared to the same period last year, rising 188.2 per cent.
Following two years of “strong” growth across all of Kingfisher’s European fascias, like-for-like sales are now forecast to climb 22 per cent in the first half, compared to previous projections of “mid-to-high teens.”
B&Q and Screwfix were among Kingfisher’s best performers in the first half of the year, with like-for-like sales up 25.7 per cent in the UK and Ireland division.
Romania was the only market to increase at a faster rate, with like-for-likes increasing by 40.2 per cent.
On a like-for-like basis, Kingfisher’s French business increased 19.1 per cent, while Poland and Iberia grew 17.8 per cent and 14.1 per cent, respectively.
Kingfisher chief executive Thierry Garnier hailed the “positive progress” the group had made on its Powered by Kingfisher strategy and said it had gained share in all of its key markets.
“With very strong comparatives from the previous year, we are pleased to see growth being delivered on a two-year basis across all categories and channels, with ecommerce sales in particular nearly three-times higher than the same period in 2019,” he said.
“We continue to be encouraged by the supportive long-term trends for our industry and are confident of continued outperformance of our wider markets.”