Second Quarter pre-close trading update to 7 July 2012
19 July 2012
Kingfisher today reports total sales up 3.7% in constant currencies, down 0.4% on a like-for-like basis, for the 10 weeks to 7 July 2012
|Constant currencies||10 weeks to 7 July 2012||23 weeks to 7 July 2012|
|Sales (1)||% Total
|UK & Ireland (3)||5.0%||1.1%||(1.9)%||(5.6)%|
|Other International (4)||9.3%||0.2%||7.6%||(0.9)%|
- All figures are on a constant currency basis. Joint Venture (Koçtaş JV) and Associate (Hornbach) sales are not consolidated. Data is provided for the 23 and 10 weeks to 7 July 2012, with the exception of Russia and China which are reported for the 26 and 13 weeks to 30 June 2012.
- Castorama and Brico Dépôt.
- B&Q in the UK & Ireland, Screwfix and the UK ‘Eco’ initiative.
- Poland, China, Spain and Russia.
Ian Cheshire, Kingfisher’s Group Chief Executive, said:
“The unprecedented wet weather across Northern Europe has continued throughout our second quarter so far, clearly impacting footfall and consumer demand for outdoor and seasonal products. However, additional marketing and promotional activity helped encourage customers to switch some of their activity to internal repairs and projects, partially offsetting the weather related weakness, particularly in the UK. We also took the necessary promotional action to clear horticultural stocks.
“Whilst these exceptional weather patterns have impacted us in the short term we continued to progress with the key steps of our ‘Creating the Leader’ programme of self-help, including accelerating the introduction of new, common ranges in the quarter. I remain confident that this programme will see us emerge as a world class retailer at helping our customers have better, more sustainable homes.”
Trading review (in constant currencies)
Total sales in France were down 0.6% (-2.3% LFL). Castorama sales were up 2.5% (-0.2% LFL). Brico Dépôt sales were down 4.5% (-4.8% LFL) reflecting different trading patterns this year in the run up to July public holidays. (Brico Dépôt’s LFL for the full quarter is expected to be down around 3% once this impact has normalised).
Total sales in UK & Ireland were up 5.0% (+1.1% LFL). B&Q total sales were up 4.9% (+1.6% LFL). Gross margin is expected to be down, despite on-going sourcing benefits, reflecting the markdowns needed to clear horticultural stocks, additional promotions to stimulate activity and the decision to accelerate range clearance all into Q2 ahead of the national roll out of a new, common tiling range. Screwfix sales grew by 7.2% in a challenging smaller tradesman market, driven by new ranges and the continued roll out of new outlets.
Total sales in Other International grew 9.3% (+0.2% LFL) with sales in Poland up 1.5% (-4.4% LFL), sales in Russia up 48.5% (+19.0% LFL) and sales in Spain up 5.6% (-3.8% LFL). In China sales declined 4.7% (-3.7% LFL) reflecting one less store compared with last year and a continued challenging housing market.
Kingfisher plc is Europe’s largest home improvement retail group and the third largest in the world, with over 980 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 50% joint venture business in Turkey with the Koç Group, and a 21% interest in, and strategic alliance with, Hornbach, Germany’s leading large format DIY retailer.
‘Creating the Leader’
This programme will see Kingfisher emerge as a world class retailer at helping our customers have better, more sustainable homes through the following eight key steps:
- Making it easier for our customers to improve their home
- Giving our customers more ways to shop
- Building innovative common brands
- Driving efficiency and effectiveness everywhere
- Growing our presence in existing markets
- Expanding in new and developing markets
- Developing leaders and connecting people
- Sustainability: becoming ‘Net Positive’
Further details on progress will be given with the interim results on 12 September for the half year ended 28 July 2012.
Ian Harding, Group Communications Director
020 7644 1029
Sarah Levy, Head of Investor Relations
020 7644 1032
Nigel Cope, Head of Media Relations
020 7644 1030
Matt Duffy, Investor Relations Manager
020 7644 1082
Clare Haines, Media Relations Officer
020 7644 1286
020 7404 5959
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Please refer to page 104 of the Annual Report and Accounts 2011/12 for further details and definitions concerning forward-looking statements and how they should be considered.