Kingfisher sales affected by ‘unusually poor’ weather and strikes in France

B&Q owner Kingfisher has blamed bad weather for hitting purchases of seasonal products during the first quarter of the financial year.

The FTSE 100 firm reported an 11.3 per cent fall in like-for-like revenues from seasonal categories for the three months ending April, as well as a 1.2 per cent drop in sales of ‘big-ticket’ and core items.

Chief executive Thierry Garnier said trading across the British Isles and France was affected by the ‘unusually poor spring weather’, which hampered demand for garden and outdoor products. 

Bad days: Kingfisher blamed ‘unusually poor spring weather’ for causing like-for-like revenues from seasonal categories to fall by 11.3 per cent in the first quarter

Sales in France were further impacted by mass protests against President Emmanuel Macron’s controversial pension reforms, which hurt footfall at the company’s Brico Depot stores.

Revenue also fell in its third-biggest territory of Poland due to a robust comparative performance and soaring inflation rates.

But Kingfisher’s total reported turnover still rose marginally, with the UK and Ireland business supported by bumper trade customer demand at Screwfix.

Since early April, the London-listed firm noted sales had improved on the back of ‘resilience’ in both the do-it-yourself and fitting services segments.

Garnier predicts the second half of the financial year will see orders recover as better weather generates a release of pent-up demand, and product cost inflation abated by lower raw material prices and freight costs. 

Despite the heightened economic uncertainty, Kingfisher has upheld its guidance for full-year adjusted pre-tax profits of £634million.

Garnier said: ‘We are comfortable with market expectations for the business this year and confident in delivering growth ahead of our markets, strong cash generation, and higher returns to shareholders over the medium-term.’

Kingfisher was one of the most prominent pandemic-era retail winners as strict rules on non-essential travel and the growth in working from home encouraged Britons with extra savings to spruce up their properties. 

It received a further uplift from low mortgage rates, a temporary stamp duty holiday, and an increasing desire among people to live in larger dwellings.

But trading in the home improvement sector has slowed significantly over the past year as skyrocketing energy prices have sent household bills soaring, and governments have initiated interest rate hikes to try and dampen inflation, pushing up mortgage costs for homebuyers.

Victoria Scholar, head of investment at Interactive Investor, said: ‘The post-covid economic reopening has seen consumers substitute away from spending on home improvements towards travel, restaurants and other activities that were largely off-limits in 2020 and 2021. 

‘On top of that, the macroeconomic pressures from rising costs, squeezed household budgets, and falling real wages have added to the consumer strain resulting in less spending in Kingfisher’s stores.’ 

Kingfisher shares were 2.3 per cent lower at 241.1p on late Wednesday afternoon, although they have expanded by about 40 per cent over the past three years. 

This post first appeared on Dailymail.co.uk