Second Quarter Pre-Close Update

RNS Number : 9985H

Kingfisher PLC

19 July 2012

 



Second Quarter pre-close update to 7July 2012

Kingfisher today reports total sales up 3.7% in constant currencies, down 0.4% on a like-for-like basis, for the 10 weeks to 7 July 2012

Constant currencies	10 weeks to 7 July 2012		23 weeks to 7 July 2012
Sales (1)	% Total Change	% LFL  Change	% Total Change	% LFL Change
France (2)	(0.6)%	(2.3)%	0.9%	(0.7)%
UK & Ireland (3)	5.0%	1.1%	(1.9)%	(5.6)%
Other International (4)	9.3%	0.2%	7.6%	(0.9)%
Total Group	3.7%	(0.4)%	1.0%	(2.8)%

(1)   All figures are on a constant currency basis. Joint Venture (Koçtaş JV) and Associate (Hornbach) sales are not consolidated. Data is provided for the 23 and 10 weeks to 7 July 2012, with the exception of Russia and China which are reported for the 26 and 13 weeks to 30 June 2012.

(2)   Castorama and Brico Dépôt.

(3)   B&Q in the UK & Ireland, Screwfix and the UK 'Eco' initiative.

(4)   Poland, China, Spain and Russia.

Ian Cheshire, Kingfisher's Group Chief Executive, said:

"The unprecedented wet weather across Northern Europe has continued throughout our second quarter so far, clearly impacting footfall and consumer demand for outdoor and seasonal products. However, additional marketing and promotional activity helped encourage customers to switch some of their activity to internal repairs and projects, partially offsetting the weather related weakness, particularly in the UK. We also took the necessary promotional action to clear horticultural stocks.

"Whilst these exceptional weather patterns have impacted us in the short term we continued to progress with the key steps of our 'Creating the Leader' programme of self-help, including accelerating the introduction of new, common ranges in the quarter. I remain confident that this programme will see us emerge as a world class retailer at helping our customers have better, more sustainable homes."

Trading review (in constant currencies)

Total sales inFrance were down 0.6% (-2.3% LFL). Castorama sales were up 2.5%        (-0.2% LFL). Brico Dépôt sales were down 4.5% (-4.8% LFL) reflecting different trading patterns this year in the run up to July public holidays. (Brico Dépôt's LFL for the full quarter is expected to be down around 3% once this impact has normalised).

Total sales in UK & Ireland were up 5.0% (+1.1% LFL). B&Q total sales were up 4.9% (+1.6% LFL). Gross margin is expected to be down, despite on-going sourcing benefits, reflecting the markdowns needed to clear horticultural stocks, additional promotions to stimulate activity and the decision to accelerate range clearance all into Q2 ahead of the national roll out of a new, common tiling range. Screwfix sales grew by 7.2% in a challenging smaller tradesman market, driven by new ranges and the continued roll out of new outlets.

Total sales in Other International grew 9.3% (+0.2% LFL) with sales in Poland up 1.5%  (-4.4% LFL), sales in Russia up 48.5% (+19.0% LFL) and sales in Spain up 5.6% (-3.8% LFL). In China sales declined 4.7% (-3.7% LFL) reflecting one less store compared with last year and a continued challenging housing market.                                                                                                                                                                                                                                                                                                                                                                                                               

Company profile

Kingfisher plc is Europe's largest home improvement retail group and the third largest in the world, with over 980 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 50% joint venture business in Turkey with the Koç Group, and a 21% interest in, and strategic alliance with, Hornbach, Germany's leading large format DIY retailer.

'Creating the Leader'

This programme will see Kingfisher emerge as a world class retailer at helping our customers have better, more sustainable homes through the following eight key steps: 

EASIER

1.   Making it easier for our customers to improve their home

2.   Giving our customers more ways to shop

COMMON

3.   Building innovative common brands

4.   Driving efficiency and effectiveness everywhere

EXPAND

5.   Growing our presence in existing markets

6.   Expanding in new and developing markets

ONE TEAM

7.   Developing leaders and connecting people

8.   Sustainability: becoming 'Net Positive'

Further details on progress will be given with the interim results on 12 September for the half year ended 28 July 2012.

Enquiries

Ian Harding, Group Communications Director	020 7644 1029
Sarah Levy, Head of Investor Relations	020 7644 1032
Nigel Cope, Head of Media Relations	020 7644 1030
Matt Duffy, Investor Relations Manager	020 7644 1082
Clare Haines, Media Relations Officer	020 7644 1286
Brunswick	020 7404 5959

Further copies of this announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App available for free at the Apple App store.

We can also be followed on twitter @kingfisherplc. 

Forward-looking statements

This press release contains certain forward-looking statements which should be considered, amongst other statutory provisions, in the light of the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. Such statements are therefore subject to risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied because they relate to future events. Reliance should not be placed on any forward-looking statement. Our forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this press release should be construed as a profit forecast.

Please refer to page 104 of the Annual Report and Accounts 2011/12 for further details and definitions concerning forward-looking statements and how they should be considered.

 

END

 

 

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