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Kingfisher plc is today providing its Q1 21/22 sales update

Published: 20 May 2021 - Neil Mead

Key points of this latest trading update from Kingfisher include:

  • Continuing to make significant progress against ‘Powered by Kingfisher’ strategic priorities
  • Growing sales ahead of the market in the UK and France
  • Total sales up 61.9% in constant currency at £3.4 billion, reflecting strong demand in all categories (against weak comparatives due to temporary store closures in the prior year)
  • LFL sales up 64.2% and corresponding 2-year LFL up 22.5%
    • Strong performance in the UK and France, despite COVID-related restrictions impacting French banners through most of the quarter
    • Poland impacted by COVID-related temporary store closures for five weeks, following a national lockdown announced in late March 2021
    • Transaction volume and average basket value both up
  • E-commerce sales up 63% (2-year growth up 258%); now 21% of Group sales (FY 20/21: 18%)
  • Q2 21/22 LFL sales (to 15 May 2021)(7) up 8.2% (2-year LFL up 25.0%), reflecting continued strong demand
  • All Kingfisher stores now open, following temporary store closures in France and Poland
  • Raising H1 21/22 LFL sales outlook to ‘mid-to-high teens’ (from ‘low double-digit’)
  • Anticipate H1 adjusted pre-tax profit to be ahead of our previous expectations, in the range of c.£580 to 600 million

 

Unaudited Q1 21/22 sales (three months ended 30 April 2021)

 

 

Sales 2021/22

% Total Change

% Total Change

% LFL

Change

% 2-year

LFL

Change

 

£m

Reported

Constant currency

Constant currency

Constant currency

UK & Ireland

1,827

+66.8%

+66.8%

+65.0%

+38.6%

- B&Q

1,212

+82.7%

+82.7%

+81.9%

+42.3%

- Screwfix

615

+42.5%

+42.5%

+39.0%

+32.5%

France

1,177

+97.4%

+98.8%

+101.7%

+18.1%

- Castorama

583

+94.5%

+95.8%

+101.8%

+13.9%

- Brico Dépôt

594

+100.3%

+101.7%

+101.7%

+22.7%

Other International (ex-Russia)

444

+9.4%

+13.0%

+5.9%

(11.0)%

- Poland

281

(12.1)%

(8.9)%

(12.0)%

(20.5)%

- Iberia(3)

90

+110.8%

+112.3%

+112.3%

+12.1%

- Romania(4)

72

+67.2%

+71.1%

+27.4%

+16.6%

- Other(5)

1

n/a

n/a

n/a

n/a

Total Group (ex-Russia)

3,448

+64.4%

+65.7%

+64.2%

+22.5%

- Russia(6)

-

(100.0)%

(100.0)%

n/a

n/a

Total Group

3,448

+60.0%

+61.9%

+64.2%

+22.5%

 

Commenting on this update, Thierry Garnier, Chief Executive Officer, said: “I am extremely grateful to all our colleagues for their continuous hard work and flexibility, enabling our banners to remain trading safely during these difficult times.

 

“The Group delivered strong sales growth in the first quarter, with LFL sales up 64% and up by 23% on a two-year basis. This is a testament to the efforts of our colleagues, the skill and professionalism of our supply chain teams, and the responsiveness in managing daily changes within all our store operations. We continue to see high levels of demand from both new and existing customers, with clear progress made on our ‘Powered by Kingfisher’ strategic priorities, especially in four key areas.

“Firstly, e-commerce continues to be our fastest-growing channel with two-year growth of over 250%, now accounting for 21% of Group sales. During the quarter we established a new agile operating model for our technology and digital teams, and further strengthened these teams with multiple new hires.

“Secondly, we are excited to have launched Screwfix as a pure-play online retailer in France in late April. Thirdly, our new own exclusive brand kitchen range is now available in all key markets, with very positive results despite lockdown restrictions.

“And finally we continue to develop, test and roll out multiple innovative propositions for our customers, with more compact store tests, a new mobile app for Screwfix, self-checkout terminals and our new tool for 3D kitchen and bathroom design. We have also started to roll out our NeedHelp services marketplace in B&Q and Poland.

“With the strong start to the year, we now anticipate first half sales and adjusted pre-tax profit to be ahead of our previous expectations. Whilst the second half of the financial year remains naturally uncertain, we continue to see supportive long-term trends for our industry and are confident of continued outperformance of our wider markets.”

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