Kingfisher plc has reported resilient trading for the third quarter ending 31 October 2024, with sales in line or ahead of the market across its key banners. The Group also tightened its full-year profit guidance range.
Q3 Sales Overview
- Total sales reached £3.2 billion, remaining flat in constant currency terms and down 0.6% on a reported basis.
- Like-for-like (LFL) sales declined 1.1%, reflecting solid performance in August and September but weaker consumer sentiment in October due to government budget uncertainties in the UK and France.
- By region:
- UK & Ireland: Sales rose 1.3%, with strong contributions from Screwfix (+1.8% LFL) and TradePoint (+4.9% LFL), alongside a 45% growth in B&Q’s e-commerce marketplace. B&Q sales declined by -1.0% at total growth and by -0.6% LFL.
- France: Sales fell 4.2%, in line with the market, as both Castorama (-4.7% LFL) and Brico Dépôt (-3.7% LFL) faced challenging conditions.
- Poland: Sales grew 3.7%, with market share gains and improved performance in “big-ticket” categories.
- By category:
- Core products (69% of sales): LFL declined 0.4%, supported by repair, maintenance, and renovation activities.
- Big-ticket items (16%): LFL fell 4%, though trends improved at key banners.
- Seasonal products (15%): LFL dipped 0.9%, impacted by wet and mild weather in October.
Operational Highlights
- E-commerce: Online penetration rose 1.3 percentage points to 18.8%, supported by marketplace growth.
- Trade sales: Reached 16.5% of Group sales (excluding Screwfix), bolstered by the launch of TradePoint’s mobile app.
- Market share: Gains were noted across the UK, Ireland, and Poland, with Screwfix delivering particularly strong results.
- Cost control: On track to achieve £120 million in structural cost reductions for FY 24/25.
CEO Commentary
Thierry Garnier, Kingfisher’s Chief Executive, stated:
“Overall trading in Q3 was resilient, with sales in line or ahead of the market. However, October was challenging due to consumer uncertainty and adverse weather conditions. Despite this, we continue to see progress across key initiatives, including strong growth in e-commerce and trade propositions.”
Garnier highlighted Kingfisher’s ability to manage costs and market share gains, reaffirming confidence in the Group’s strategic priorities and resilience amid macroeconomic uncertainty.
FY 24/25 Outlook
- Adjusted profit before tax (PBT) guidance has been narrowed to £510–540 million (previously £510–550 million).
- Free cash flow guidance remains at £410–460 million.
- Recent government announcements in the UK and France on wage increases and tax changes are expected to result in additional costs of approximately £45 million for FY 25/26, with some mitigations planned.
Kingfisher also anticipates gradual improvement in the home improvement market, particularly in the UK, Ireland, and Poland, while France may remain subdued in the near term.
Current Trading
Q4 trading to date shows improved momentum, with LFL sales down just 0.5% for the first three weeks of November.
Kingfisher remains focused on its strategic priorities, confident in its ability to adapt to market challenges while continuing to deliver value for shareholders and customers.