Kingfisher%20HQ,%20London.jpg” alt=”Kingfisher plc, UK” width=”550″ height=”366″ />
UK-based home improvement retailer Kingfisher has reported a 3.6% decrease in total sales and 8.6% decline in retail profit in the first quarter (Q1), impacted by poor weather across Europe and adverse foreign currency translation.
Total group sales in the 13-week period ended 28 April 2012 were £2.63bn, while group profit totalled £160m in the same period.
The retailer said seasonal sales across the group plunged 22% in the first quarter, impacting profit by around £29m.
Sales from UK & Ireland operations declined 6.9% to £1.1bn and retail profit edged down 9.8% to £75m in the reporting quarter, reflecting year-on-year unfavourable weather patterns and fewer public holidays.
B&Q UK & Ireland’s total sales fell 8.9% to £968m and retail profit declined 13.8% to £65m in the first quarter ended April 2012.
Screwfix grew total sales by 10.2% to £137m and the firm opened eight net new outlets during first quarter, taking the total to 223.
Retail profit of Screwfix jumped 31.7% to £11m, reflecting the strong sales growth, more direct sourcing, distribution efficiencies and continued tight cost control.
Kingfisher France sales were up 2.2% to £1.09bn in the 13-week period ended 28 April 2012, while retail profit rose 4.2% to £78m during the period, driven by the sales growth and higher gross margins.
Across both Castorama and Brico Depot, two net new stores were opened and three stores were revamped, adding around 3% new space compared to Q1 last year.
Sales from Kingfisher’s other international operations increased 5.8% to £438m, driven by new store openings offset by adverse weather across continental Europe.
During the first quarter, the company opened two new international stores – one in Spain and the other in Turkey, with 10% new space compared to the same quarter a year ago.
Kingfisher operates 968 stores in eight countries in Europe and Asia and has retail brands such as B&Q, Castorama, Brico Depot and Screwfix under its portfolio.
The retailer also has a 50% JV business in Turkey with the Koç Group, and a 21% interest in, and strategic alliance with, German DIY retailer Hornbach.
Image: In the first quarter, Kingfisher’s sales from UK & Ireland operations decreased 6.9% to £1.1bn and retail profit fell 9.8% to £75m. Photo: Minky69