Record wet weather during the summer was blamed for a £30
million decline in profits at Kingfisher, the
parent company of B&Q and
Screwfix. Seasonal product sales were down 7
per cent in the half-year to 28th July resulting in higher
seasonal markdowns to clear excess stocks and additional
marketing activity to drive footfall and market share.
At B&Q, UK and Ireland sales were down 3 per cent
to £2 billion in the half-year, while retail profit declined
by 24.1 per cent to £125 million during the period.
Screwfix, on the other hand, grew total sales by
8.9 per cent to £273 million, benefiting from the continued
rollout of new outlets, the success of its “click, pay &
collect” service and the more recent introduction of a
mobile click and collect offer. Retail profit at Screwfix was up
19.1 per cent to £20 million, reflecting the strong sales
growth, gross margins benefiting from more direct sourcing,
distribution efficiencies and continued tight cost control. For
more on how retailers are getting to grips with click and
collect, read our September cover story.
The wet weather didn’t seem to hinder Laura
Ashley’s performance. UK retail sales rose 6.1 per cent
to £127.5 million and pretax profits jumped 13.7 per cent to
£8.3 million in the 26 weeks to 28th July 2012. While
apparel sales in the UK dipped 1.2 per cent in the period, the
decline was offset by a strong performance in homewares,
including lighting, gifts, bed linen, rugs, throws, cushions and
children’s accessories.
British fashion retailer Lipsy has signed a
franchise agreement with Brand Market India (BMI) to market and
distribute Lipsy-branded products in India. Lipsy, which was
acquired by Next in 2008, already sells
internationally via franchise stores in the Middle East and
through concessions in department stores in the US, France,
Singapore and Australia.
Thorntons says that despite the profits decline,
the business is on stronger footing for the year ahead. Sales for
the year ended 30th June dipped from £218.3 million to
£217.1 million, while pretax profit plunged 79 per cent from
£4.3 million to £900,000. Thorntons Direct grew sales
by 4.2 per cent to £10 million during the period, with a good
performance at Christmas and Easter. A new website is scheduled
to launch later this month to offer greater flexibility for
Thorntons and its customers as well as to provide opportunities
to further enhance personalisation.
In related news, Thorntons confirmed today that Paul Wilkinson,
currently serving as a senior independent director, will take
over as chairman following John von Spreckelsen’s retirement in
February.
More than £1 billion was wiped off the value of fashion
house Burberry after it posted a profits
warning. The unscheduled trading update caused shares to slide 21
per cent, the biggest one-day decline in the company’s shares
since it listed, notes the Telegraph.
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