Kingfisher Q1 trading update to 30 April 2022Strong performance versus pre-pandemic levels; 3-year LFL +16.2%Key points
- Sales significantly ahead of pre-pandemic performance (3-year LFL +16.2%), supported by strong market share gains
- Sales of £3.2bn down by -4.2% "in line with our expectations" (total sales -4.2% in constant currency and LFL -5.4%)
- B&Q sales in UK down -17.8% YoY. LFL -18.3% (3-year LFL +16.3%)
- Screwfix UK sales -7.0%. LFL -10.9% (3-year LFL +18.0%)
- Good momentum into the second quarter with 3-year LFL +21.8%, and LFL -2.5% for the 2 weeks to 14 May 2022 including a c.1% adverse calendar impact
- Resilient demand from both DIY and DIFM/trade segments
- Omni-channel engagement remains high with e-commerce sales 3-year growth of 164%; representing 16% of Group sales (Q1 19/20: 7%)
- Full year guidance reiterated; anticipate FY 22/23 adjusted pre-tax profit of c.£770m
- Announcing return of a further £300m of surplus capital via a share buyback programme; first tranche to commence soon
UK & IRELANDTotal sales -14.1% (LFL -15.8%; 3-year LFL +16.7%).B&Q
- B&Q sales -17.8%. LFL -18.3% (3-year LFL +16.3%), reflecting very strong prior year comparatives and the impact of storms in the UK in February.
- Good performance across all categories on a 3-year basis, in particular in the building & joinery, outdoor and bathroom & storage categories. Own exclusive brands
- (OEB) performed well in the quarter, supported by resilient demand in the kitchen and bathroom & storage categories.
- LFL sales of weather-related categories were -28% (+25% on a 3-year LFL basis).
- LFL sales of non-weather-related categories, including showroom, were -14% (+13% on a 3-year LFL basis). TradePoint, B&Q’s trade-focused banner, continued to outperform withLFL sales -8% and 3-year LFL sales +32%.
- TradePoint sales were 21% of B&Q sales in Q1.
Screwfix
- Screwfix sales -7.0%. LFL -10.9% (3-year LFL +18.0%), with resilient demand from trade customers and despite very strong prior year comparatives.
- Strong 3-year performance in tools & hardware and EPHC (electricals, plumbing, heating & cooling) categories.
- During the period, Screwfix continued to roll out Screwfix ‘Sprint’, with good results. ‘Sprint’ offers customers an industry-leading 60-minute home delivery service (average deliverytime c.45 minutes), currently covering 40% of the UK population.
- Screwfix opened 13 new stores in Q1 in the UK and Republic of Ireland, and remains on track to open 80 new stores in these countries during this financial year. The business will also open its first stores in France in the second half of 2022.
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