• H1 performance in line with expectations (total sales -2.8% in constant currency and LFL -4.1%)
• Sales significantly ahead of pre-pandemic levels (3-year LFL sales +16.6%), supported by market
share gains; Group Q2 sales trend ahead of Q1
• Resilient sales from both DIY and DIFM/trade categories
• Continued effective management of inflation and supply chain pressures
• Strong execution against our strategic priorities and investing for growth – digital, trade proposition,
Screwfix and Poland expansion
• Attractive shareholder returns through dividends and ongoing second £300m share buyback
programme; reflects confidence in long-term growth and cash generation opportunity
Thierry Garnier, Chief Executive Officer, said:
“Kingfisher has delivered a very resilient first half of sales. While facing very strong comparatives from the prior year as well as a more challenging environment, LFL sales were 16.6% ahead of pre-pandemic levels with a sequential improvement from Q1 to Q2. This was driven by the extension of share gains in all our key markets, reflecting successful execution of our strategy, and resilient sales from both DIY and trade customers. We are now back to pre-pandemic levels for in-store product availability and maintaining competitive pricing across our banners.
“Looking to the months ahead, although trading in the year to date has been in line with our expectations, we remain vigilant against the more uncertain economic outlook for the second half. We are therefore focussed on delivering value to our customers at a time when they need it most. You can expect continued strong execution, with a focus on growing sales and market share, effective management of our gross margin, and alignment of our costs and inventories to market conditions.
“With the business and our balance sheet in a strong position, we continue to invest in opportunities to drive growth. B&Q successfully launched its first home improvement marketplace during the period, and we are now preparing for marketplace launches in France, Poland and Iberia. We are also continuing to invest in the trade segment through Screwfix’s expansion in the UK and Ireland, as well as the further development of our offer for tradespeople across our banners, building on the success of TradePoint. We are on course to open our first Screwfix stores in France within a few weeks from now. And we are developing innovative new products and services to support more sustainable and energy efficient homes, which will benefit our customers and the environment.
“These investments, together with the proven resilience of the home improvement sector, our balanced exposure to DIY and DIFM/trade, and our strong and consistent execution, support our confidence in continuing to grow ahead of our markets.”