Home Improvement Retailer Kingfisher Sees Growth Amidst Lowered Profit Expectations
- Kingfisher lowers upper end of FY guidance
- Sales increased 1.1% to £3.3bn during Q3 period
- Tradepoint was Kingfisher’s best performing brand with a 1.9% increase and 30% three-year like for like performance
- Screwfix performed well, opening two stores in France
- E-commerce sales up 138% compared to three years ago
- Good start to Q4 with 16.2% three-year like-for-like increase and 2.8% normal like-for-like increase for the three weeks to November 19
- DIY sales supported by new industry trends such as working from home and energy efficiency
- Competitive pricing remains a priority for customers facing rising living costs
Home improvement retailer Kingfisher, the owner of B&Q, has lowered its upper guidance for FY 22/23 pre-tax profit range despite an increase in sales for the three months to October 31. The company now expects its adjusted pre-tax profits to be between £730m and £760m. Despite this, overall sales increased by 1.1% to £3.3bn during Q3, significantly ahead of its pre-pandemic performance with a three-year like for like increase of 15.3%. Tradepoint was Kingfisher’s best performing brand, seeing a 1.9% increase like for like and nearly a 30% increase on its three-year like for like performance. Screwfix also performed well as Kingfisher opened two stores in France, with plans to open more in 2023. The company successfully launched B&Q stores in Spain and Portugal. E-commerce sales increased by 138% compared to three years ago, with a year on year increase of 2.3%. In the first three weeks of Q4, there was a 16.2% three-year like-for-like increase and a 2.8% normal like-for-like increase for November 19. CEO Thierry Garnier stated that sales trends were resilient, 15.3% ahead of pre-pandemic levels in the quarter, supported by continued market share growth at Screwfix, TradePoint, and Castorama Poland. He added that competitive pricing remains a priority for customers facing rising living costs. The company plans to invest in growth through its own exclusive brands, which represent 45% of sales.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Kingfisher’s financial performance, sales growth, and expansion plans without any significant issues related to digressions, misleading information, sensationalism, redundancy, or personal perspective. It includes relevant details about the company’s performance and future strategies.
Noise Level: 4
Noise Justification: The article provides relevant information about Kingfisher’s financial performance and its plans for expansion, but it lacks a deeper analysis or exploration of the factors affecting the industry and consumer behavior.
Financial Relevance: Yes
Financial Markets Impacted: Kingfisher’s stock price and other home improvement retailers
Financial Rating Justification: The article discusses Kingfisher’s financial performance, including changes to its profit guidance and sales growth, as well as its expansion plans in France and Spain. This information could impact the company’s stock price and potentially affect competitors in the home improvement industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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