UK and Ireland Sales Hold Strong Amidst Poor Spring Weather
- Kingfisher reports £3.3bn Q1 sales
- B&Q and Screwfix owner posts 0.8% YoY increase
- UK and Ireland contribute £1.6bn to sales
- Poor weather affects 18% of sales, causing a like-for-like decrease of 11%
- B&Q sales at £980m, Screwfix sales at £610m
- Good performance at B&Q UK and Ireland despite weather impact
- Strong market share gains and positive like-for-like at Screwfix
- Two new Screwfix stores opened in France, targeting 85 new stores across UK, Ireland, and France in FY23
- CEO Thierry Garnier confident of hitting £634m profit guidance for FY23
- Improved trading since early April with pent-up demand
- E-commerce sales up 4.7% driven by B&Q marketplace success
- Screwfix trade customers see 6.5% growth
Kingfisher has reported a £3.3 billion sales figure for the three months to April 2023, marking a 0.8% year-on-year increase. The company attributed 18% of its sales to poor weather conditions in spring, causing a like-for-like decrease of 11%. Despite this, the UK and Ireland contributed £1.6 billion to the total sales, with B&Q sales at £980 million and Screwfix sales at £610 million. The company noted a good performance at B&Q in the UK and Ireland despite weather impacts on seasonal sales. Additionally, Kingfisher saw strong market share gains and positive like-for-like growth at Screwfix. The company plans to open two new Screwfix stores in France and aims for up to 85 new stores across the UK, Ireland, and France by FY23. CEO Thierry Garnier expressed confidence in hitting its FY23 guidance of £634 million profit. He noted that sales in core and ‘big-ticket’ categories have shown resilience despite poor spring weather affecting demand for garden and outdoor products. Trading improved since early April, with pent-up demand expected to release as the weather improves. Inventory remains healthy, reducing as planned. The company is making progress on its key priorities, including Screwfix growth, e-commerce sales up 4.7%, and B&Q marketplace success contributing to 27% of online sales in April.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Kingfisher’s financial performance, including specific sales figures, the impact of weather on seasonal sales, CEO’s comments, and plans for store expansion and e-commerce growth. It does not include any irrelevant or misleading details, sensationalism, redundancy, personal perspective presented as fact, invalid arguments, or logical errors.
Noise Level: 3
Noise Justification: The article provides relevant information about Kingfisher’s financial performance and highlights the impact of weather on their sales. It also mentions the company’s expansion plans for Screwfix stores and e-commerce growth. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: UK and European home improvement retail sector
Financial Rating Justification: The article discusses Kingfisher’s financial performance, including sales figures and growth in various segments of their business, as well as their expansion plans for Screwfix stores. This impacts the UK and European home improvement retail market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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