B&Q parent company Kingfisher has reported a dip in sales, down 0.8% on a like-for-like (lfl) basis, for the 10 weeks to July 10, 2010.
Total sales for the period went up 0.3% in constant currencies, according to a trading update released today.

Total sales at B&Q were down 3.5% (down 4.3% on a lfl basis), however gross profit was ahead due to a higher gross margin percentage achieved on those sales, said the report. Sales of seasonal categories were down at the retailer, and showroom and building categories were also down, "reflecting fewer promotions and weak consumer appetite for bigger ticket purchases".

Sales at B&Q were also impacted by the roll out of TradePoint, which the report said was "anticipated". The company's trade arm is now in 89 B&Q stores. However, targeted promotions, shrinkage reduction and more direct sourcing helped boost gross margin percentage, which was up strongly compared to Q1 2010/2011 and the prior year.

Sales at Screwfix declined by 3.6%.

Kingfisher group chief executive Ian Cheshire said: "This is a solid performance in an uncertain environment for our customers right across Europe. Consumer spending remains under pressure, notably in the UK, and so we continued to focus on carefully targeting our promotions to drive profitable sales, improving our cash margins and vigorously controlling our costs. As a result our expectations for first half cash and profit outturn remain on track.

"While we remain cautious about the outlook for consumer spending, we are confident that the strengths of the group and our well established self-help initiatives leave us well placed to continue our good progress over the balance of the year."