
Britain's longstanding passion for home renovations, particularly new fitted kitchens, has often been seen as a measure of the country's economic health. However, the latest update from Howden Joinery, a major FTSE 100 supplier of kitchens, joinery products, and hardware, reflects a challenging period for consumer confidence in the run up to the Chancellor's October budget.The company, which sells largely to small builders, reported a slowdown in trading since its half-year update, attributing it to weak consumer spending and uncertainties surrounding the autumn budget. Due to this dip, Howdens has cautioned investors that its pre-tax profits for this year are likely to fall on the lower end of the projected range, between £328 million and £350 million.Despite the challenging market conditions, Howdens emphasized that its profitability remains buoyed by recent market share gains and a targeted cost-saving program. The group reported a 1.9% decline in total like-for-like sales from mid-June to the end of October, with UK sales down by 2.2%. However, sales outside the UK saw a 9.4% increase. Year-to-date, like-for-like sales across the entire group have risen marginally by 0.2%.

Chief Executive Andrew Livingston highlighted the company’s resilience, noting, “Howdens has delivered another strong period of market outperformance in continued challenging conditions, underlining the strength of our trade-only, in-stock business model.”Looking ahead, Livingston expects a difficult market environment to persist into next year, with little sign of improvement in consumer sentiment. However, he remains confident that Howdens' unique business model will continue to drive growth and set the company on course for "excellent progress over the medium term."Howdens also anticipates additional costs of around £18 million annually due to increases in employer national insurance contributions and the national minimum wage. Founded in 1995 by Matthew Ingle, Howdens operates depots across the UK, France, and Belgium. Since Ingle’s retirement in 2018, Livingston has led the company, maintaining its focus on providing in-stock solutions for trade customers.Howdens is not the only Kitchens retailer reporting difficult trading. Wickes, in its Q3 report, announced a reduction of -13.3% in its like-for-like (LFL) revenue growth results for its Design & Installation business in the 13 weeks to 28th September. The decline has slowed down from -18.9% in the previous quarter.Read the full update on Howdens website