Company Expects FY 22/23 Profits of £770m Amidst ‘Other’ Retail Losses

  • Kingfisher’s Q1 sales drop by 5.4% to £3.2bn
  • Sales up 16.2% from pre-pandemic levels as supply chain pressures ease
  • UK and Ireland total sales down 14.1%, but up 16.7% on a three-year basis
  • B&Q sales drop 17.8%, despite rising 16.3% compared to pre-Covid levels
  • Screwfix sales down 7.0%, with like-for-like sales falling 10.9%
  • E-commerce sales grow 164% on a three-year basis, representing 16% of group sales
  • Company expects FY 22/23 adjusted pre-tax profits of £770m with ‘other’ retail losses of £20m
  • Investment in B&Q’s e-commerce marketplace leads to £5m retail loss anticipation

Kingfisher has reported a 5.4% drop in like-for-like sales to £3.2bn for Q1, which is an improvement from pre-pandemic levels as supply chain pressures ease. In the UK and Ireland, total sales fell by 14.1%, but increased by 16.7% on a three-year basis. The company’s CEO, Thierry Garnier, stated that demand remains resilient across all customer segments and banners. B&Q sales dropped 17.8%, despite rising 16.3% compared to pre-Covid levels due to storm impacts in the UK. Screwfix sales fell by 7.0%, with like-for-like sales decreasing 10.9%. However, e-commerce sales grew 164% on a three-year basis, accounting for 16% of group sales. Kingfisher anticipates FY 22/23 adjusted pre-tax profits of £770m, while expecting ‘other’ retail losses of £20m from investments in NeedHelp, Screwfix International, and franchise agreements. The company plans to expand Screwfix in the UK and France and increase trade customer base.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Kingfisher’s sales performance, including specific numbers and comparisons to pre-pandemic levels and three-year basis. It also includes quotes from the CEO that support the company’s outlook on managing inflationary and supply chain pressures and future growth initiatives.
Noise Level: 3
Noise Justification: The article provides relevant information about Kingfisher’s financial performance and strategic initiatives, with a focus on sales figures, inflationary pressures, and expansion plans. It also includes some comparisons to pre-pandemic levels and three-year trends. However, it lacks in-depth analysis or exploration of the underlying causes of these trends and does not delve into potential long-term consequences for the company or industry.
Financial Relevance: Yes
Financial Markets Impacted: Kingfisher’s stock price and retail industry
Financial Rating Justification: The article discusses Kingfisher’s financial performance, including sales figures and profit guidance, which can impact the company’s stock price and the retail industry as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: The article discusses a drop in sales for Kingfisher, but it does not mention an extreme event. The impact is minor due to the company’s resilient demand and focus on growth initiatives.

Reported publicly: www.retailsector.co.uk