Kingfisher has cut its full year forecast from £634 million to £590 million as it reported a drop in its first half profit before tax of a third to £317 million. Like for like sales showed a 1.7 per cent increase for the period in the UK and Ireland in stark contrast to Poland and France where like for like sales fell by 10.9 per cent and 3.8 per cent respectively.
The business has cited an overall weaker consumer sentiment as well as a challenging macroeconomic backdrop in Poland where inflation is high and interest rates have risen sharply – mirroring conditions in the UK. Its Brico Depot chain in France also showed a weaker performance with consumer confidence in France at an all time low according to the business.
Chief executive Thierry Garnier said: “Our like-for-like sales in H1 were slightly ahead of expectations, against a backdrop of unseasonal weather and ongoing macroeconomic challenges in our markets.
“Overall demand for our core and ‘big ticket’ categories was healthy, and we were pleased to see an improving volume trend in these categories through the half.”
Kingfisher trades from 300 B&Q stores and a further 840 Screwfix outlets in the UK where it has significant online channel revenues. It plans to open ‘micro-stores’ for Screwfix to facilitate click & collect in locations too small for a full store offering and is also looking to open further smaller B&Q Local branches in high street locations in and around London.
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