B&Q owner Kingfisher sees sales boost thanks to spring heatwave
Kingfisher has hailed a 'good start to the year' as good weather elevated demand for the home improvement firm's seasonal categories in the UK and Ireland.
Screwfix's parent company revealed its turnover rose by 2.2 per cent at constant currency rates to £3.3billion in the three months ending April, while underlying sales expanded by 3.1 per cent.
Revenue across the Britain jumped 6.2 per cent to £1.73billion, supported by unusually warm spring weather driving purchases of seasonal goods at B&Q.
Outdoor lighting products were especially popular, as were heaters, barbecue gas bottles, and painting tools for shed, fence and decking projects.
Kingfisher told This is Money that consumers were buying into decking projects this season more than in previous years.
The London-based group also achieved rising like-for-like sales at its Tradepoint and Screwfix divisions, with the latter benefiting from a broader product range for trade customers and its click-and-collect service.
Growth in the UK and Ireland offset declining revenues in Poland, which the business attributed to 'current geopolitical factors,' and in France, where they fell 3.2 per cent to £976million.
However, the FTSE 100 firm gained market share in all major territories and increased its e-commerce turnover by 9.3 per cent.
Meanwhile, it attracted growing demand for core and 'big-ticket' categories in Iberia, particularly in Valencia, the centre of one of Spain's deadliest-ever floods last November.
'We have made a good start to the year,' remarked Thierry Garnier, chief executive of Kingfisher, adding: 'It is still early in the year and consumer sentiment remains mixed across our markets.
'We are focused on executing our strategic growth priorities, maintaining discipline on margin and costs, and driving shareholder returns.'
Following the performance, Kingfisher has reaffirmed its annual guidance for pre-tax profits of around £480million to £540million and free cash flow of about £420million to £480million.
It anticipates 'little direct impact' from any possible changes to tariff measures, given that it has no US operations and sources most of its products from Europe.
'Although no significant impact from US trade policy is expected, they will be watchful eyes on the path of inflation,' said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
'If shoppers have to pay more for essentials, they may be more cautious ahead about spending on home revamps.'
Kingfisher shares were 3 per cent higher at 286.8p on Wednesday morning, taking their gains to approximately 17 per cent since the year started.
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