Kingfisher’s Q3 trading update shows very strong 2-year LFL growth of 15% versus pre-pandemic, but a small decline of 2.4% compared to the post-lockdown surge in 2021.
Q3 trading update to 31 October 2021
Sales of £3.2 billion; LFL down 2.4% and 2-year LFL(2) up 15.0%
Strong sales performance from all banners across Europe and categories on a 2-year basis, across both retail and trade channels
Continued market share gains, driven by ongoing delivery against strategic priorities
Effective management of product availability, logistics and inflation pressures
Good start to the fourth quarter: Q4 21/22 LFL sales (to 13 November) on a 2-year basis up 13.2% (LFL up 0.4%)
Expect H2 21/22 LFL sales and full year adjusted pre-tax profit to be towards the higher end of previously guided ranges
Strategic execution and supportive new industry trends provide opportunity for sustained long-term growth
Omni-channel engagement remains high with e-commerce sales(7) 2-year growth of 133%; now 16% of Group sales
H2 21/22 LFL sales: expect to be towards the higher end of previously guided range (-7% to -3%; 2-year LFLs of +9% to +13%)
Full year adjusted pre-tax profit: expect to be towards the higher end of our previously guided range (£910 million to £950 million)
Commenced £300 million share buyback programme; c.£67 million completed so far
Trading highlights – UK & Ireland
Total sales -1.9% (LFL -3.5%; 2-year LFL +15.7%). Continuing to grow sales ahead of the market with strong engagement from new and existing customers.
B&Q sales -5.2%. LFL -5.6% (2-year LFL +17.1%) reflecting resilient demand against the backdrop of very strong prior year comparatives.
Strong 2-year performance in outdoor, building & joinery and kitchen categories.
LFL sales of weather-related categories were down 12% (up 28% on a 2-year LFL basis). LFL sales of non-weather-related categories, including showroom, were down 4% (up 14% on a 2-year LFL basis).
TradePoint, B&Q’s trade-focused banner, continued to outperform, with LFL sales up 5% and 2-year LFL sales up 27%. TradePoint sales were 22% of B&Q sales in Q3.
B&Q’s new own exclusive brand (OEB) kitchen range continues to perform well in H2, with a healthy order-book of sales and good take-up of installation services.
Opened two new stores in Q3, including one compact store and one further store-in-store concession (within an ASDA supermarket).
Screwfix sales +4.0%. LFL +0.2% (2-year LFL +13.0%) reflecting continued strong demand from trade customers.
During the period, we continued to roll out Screwfix ‘Sprint’, with strong early results. ‘Sprint’ offers customers an industry-leading 60-minute home delivery service (average delivery time c.45 minutes), currently covering one third of the UK population.
Opened 11 new stores in Q3 in the UK and Republic of Ireland.
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