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 2021Sales of £3.2 billion; LFL down 2.4% and 2-year LFL(2) up 15.0%Key points
- 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
- 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
- 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.
