DIYWEEK.net

A good third-quarter performance in the UK by B&Q and Screwfix owner Kingfisher was eclipsed by disappointing trading in international markets, the group revealed today.
Kingfisher reported sales of £2.8bn, down 3.6% overall and 0.9% like for like. Retail profit came in at £225m, a fall of 6.9% in constant currencies after development costs of £6m in new markets Germany, Portugal & Romania. Underlying retail profit, excluding these costs, was down 3.6%.

In the UK and Ireland sales rose 4.8% to £1.1bn, 2.6% like for like, while retail profit was up 11.1%. Kingfisher said business had benefited from a more favourable market, and that Screwfix had put in a very strong performance, with like-for-like sales up 13.1%.

In Kingfisher's overseas markets, however, sales and profits took a hit.

Group chief executive Sir Ian Cheshire said: "Trading conditions in our largest and most significant market, France, were particularly difficult and deteriorated across the quarter, impacted by the weak economic backdrop.

"In the UK however, where conditions have been more favourable, we have delivered like-for-like growth, with Screwfix performing particularly well, delivering a 25% increase in sales on top of very strong growth last year.

"Overall, we remain cautious on the outlook, especially in France, and continue to focus on margin and cost initiatives to support our performance."