9 Weeks Sales Figures - Growth of 6.0%
Kingfisher PLC
11 January 2000
Trading statement for 9 weeks ended 1 January 2000
KINGFISHER REPORTS CHRISTMAS
LIKE-FOR-LIKE SALES GROWTH OF 6.0%
Kingfisher plc, the European retail group, today reports like-for-like sales
growth of 6.0% over the nine weeks ended 1 January 2000, with each of its
sectors experiencing sales growth against the comparable period a year
earlier.
The group's total sales in the period were £2.59bn (Euro 3.94bn) a 30.8%
increase on the previous year. This reflected growth from acquisitions and
new stores as well as the underlying like-for-like sales increases, and was
achieved despite the loss of a key trading Saturday on 1 January 2000.
Commenting on the figures, Kingfisher's Chief Executive Sir Geoffrey Mulcahy
said:
' We are pleased with our performance during this important 9 week period. It
demonstrates that our stores are fulfilling the needs of our customers by
offering better value, service and choice and justifies the increased
investment undertaken during the year.
' We are taking advantage of the opportunities presented by the rapidly
changing retail environment with a further acceleration of our development
plans. This has resulted in additional significant costs being incurred in
the last few months. We are investing heavily in e-commerce and other new
channels throughout the Group, and expect our revenue costs in this area to
exceed £21m in the current year.
' In addition we have continued to invest in measures that will drive through
operational efficiencies as well as in new format stores such as Comet, B&Q,
Big W in the UK and Promarkt in Germany. This investment will ensure that
Kingfisher brands can continue to build on their strengths and remain in the
vanguard of future retail developments. Kingfisher's commitment to delivering
real value for our customers has resulted in some margin pressure in parts of
our business. However, we remain confident of achieving the demanding medium
term targets we have set ourselves.'
Sector highlights and developments
DIY: B&Q, the market leader in the UK, increased sales by 30.2%. Key drivers
to this sales uplift were the full impact of the eight Warehouses opened
earlier in the year and strong like-for-like growth of 11.9%. Like-for-like
sales growth was driven by a combination of higher customer numbers,
particularly in Warehouse, and higher average item values. Warehouse sales
grew by 50%, and accounted for 37% of total sales during the period. Despite
four Supercentre closures since last year, Supercentre sales grew by 11% year
on year.
Castorama, excluding B&Q, saw like-for-like sales growth of 7% on a proforma
basis, with particularly good performance being achieved by Brico Depot due to
strong sales in all categories.
Electrical: Darty, the market leader in France, increased like-for-like sales
by 11.1%. Driving this growth were strong volume sales of PC's, mobile
phones, and vision, enhanced by a significant increase in sales of
accessories.
Comet, which introduced its new EDLP pricing policy on 1 October, increased
sales by 12.8%, driven by like-for-like sales ahead by 6.2%, growth from new
stores, major refits, and call centre sales. Like-for-like sales growth was
particularly strong in small appliances, vision, and accessories but with both
multi-media and electronics suffering declines.
General Merchandise: At Woolworths, sales increased by 7.3%, of which just
over half emanated from new stores opened during the year. Like-for-like
sales growth was 3.1%, a creditable achievement in a difficult trading
environment and against a strong similar period in the previous year, driven
by sales gains in mobile phones, music and video, and confectionery. Sales via
complementary channels, although a small proportion of the total, were well
ahead of expectation, and the Woolworths internet site was launched on 9
December.
Superdrug, the health and beauty specialist, achieved a like-for-like sales
increase of 0.6%. Although the general market remains difficult with low
volume growth and price deflation, progress was achieved as a result of
continued strong growth in pharmacy and in key areas such as ladies gifts,
skin care, and cosmetics.
Sir Geoffrey Mulcahy will be hosting a telephone conference call for analysts
at 07:30 (London time) today to provide a further background to this
statement. Those wishing to participate should telephone 01296 480100 and
quote the access code 2627 from 07:20 onwards.
For further information
Kingfisher plc +44 (0) 20 7724 7749
Website address www.kingfisher.co.uk
Media Enquiries
Gwen Gober, Director of Corporate Affairs +44 (0) 20 7725 5714
Broker and Institutional Enquiries
Keith Williams, Director of Investor Relations + 44 (0) 20 7725 5776
CHRISTMAS TRADING STATEMENT
Sales for the 9 week period ended 1 January 2000
1999/00 1998/99 % % Like-
(Wk 40-48) (Wk 40-48) increase for-like
£m Euro m £m Euro m
B&Q ** + 395.8 602.7 304.0 462.9 30.2% 11.9%
Castorama 344.9 525.2 n/a n/a n/a n/a
DIY sector 740.7 1,127.9 304.0 462.9 143.7% 11.9%
Darty * 276.9 421.7 266.6 406.0 3.9% 11.1%
Comet 265.8 404.8 235.7 358.9 12.8% 6.2%
Other
Electricals *** + 310.8 473.3 257.2 391.7 20.8% 5.8%
Electrical sector 853.5 1,299.8 759.5 1,156.6 12.4% 8.0%
Woolworths 666.8 1,015.4 621.2 946.0 7.3% 3.1%
Superdrug 189.6 288.7 184.4 280.8 2.8% 0.6%
Other **** + 137.6 209.5 110.4 168.1 24.6% 0.6%
General
Merchandise 994.0 1,513.6 916.0 1,394.9 8.5% 2.5%
sector
Total Group 2,588.2 3,941.3 1,979.5 3,014.4 30.8% 6.0%
Local Currency
Darty (FFRm) 2,843.7 2,494.7 14.0% 11.1%
The like-for-like increases are shown at constant exchange rates
Euro comparisons are at a constant exchange rate (1.5228)
* All store sales were lower by £(41.0)m as a result of translation
into sterling of which £(23.7)m related to Darty.
** Includes NOMI, Screwfix and B&Q Shanghai.
*** Comprises Wegert, BUT, BCC, New Vanden Borre and Electric City
**** Comprises Entertainment UK, MVC and VCI (Entertainment UK and VCI
not included in LFL increase)
+ Sales from Wegert, BUT, NOMI, VCI and B&Q Shanghai are for the quarter
ended 31 December 1999
CHRISTMAS TRADING STATEMENT
Sales for the 48 week period ended 1 January 2000
1999/00 1998/99 % % Like-
(Wk 1-48) (Wk 1-48) increase for-like
£m Euro m £m Euro m
B&Q ** + 2,174.5 3,311.3 1,770.2 2,695.7 22.8% 8.4%
Castorama 2,034.0 3,097.4 n/a n/a n/a n/a
DIY sector 4,208.5 6,408.7 1,770.2 2,695.7 137.7% 8.4%
Darty * 1,062.4 1,617.8 1,020.3 1,553.7 4.1% 4.7%
Comet 886.0 1,349.2 785.3 1,195.9 12.8% 5.8%
Other
Electricals *** + 983.2 1,497.2 449.3 684.2 118.8% 5.7%
Electrical sector 2,931.6 4,464.2 2,254.9 3,433.8 30.0% 5.3%
Woolworths 1,752.8 2,669.2 1,667.4 2,539.1 5.1% 2.5%
Superdrug 784.9 1,195.2 743.3 1,131.9 5.6% 3.4%
Other **** + 346.4 527.5 269.3 410.1 28.6% 2.0%
General
Merchandise 2,884.1 4,391.9 2,680.0 4,081.1 7.6% 2.8%
sector
Total Group 10,024.2 15,264.8 6,705.1 10,210.6 49.5% 5.2%
Local Currency
Darty (FFRm) 10,656.9 9,890.3 7.8% 4.7%
The like-for-like increases are shown at constant exchange rates
Euro comparisons are at a constant exchange rate (1.5228)
* All store sales were lower by £(50.4)m as a result of translation into
sterling of which £(34.3)m related to Darty.
** Includes NOMI, Screwfix and B&Q Shanghai.
*** Comprises Wegert, BUT, BCC, New Vanden Borre and Electric City
**** Comprises Entertainment UK, MVC and VCI (Entertainment UK and VCI not
included in LFL increase)
+ Sales from Wegert, BUT, NOMI, VCI and B&Q Shanghai are for the period
ended 31 December 1999
CHRISTMAS TRADING STATEMENT
Pro-Forma - at constant exchange rates and
assuming all businesses owned by Kingfisher throughout both years
Sales for the 9 week period ended 1 January 2000
1999/00 1998/99 % % Like-
(Wk 40-48) (Wk 40-48) increase for-like
£m Euro m £m Euro m
B&Q ** + 395.8 602.7 311.4 474.2 27.1% 12.4%
Castorama 344.9 525.2 306.1 466.1 12.7% 7.0%
DIY sector 740.7 1,127.9 617.5 940.3 20.0% 9.7%
Darty 276.9 421.7 242.9 369.9 14.0% 11.1%
Comet 265.8 404.8 235.7 358.9 12.8% 6.2%
Other
Electricals *** + 310.8 473.3 239.2 364.3 29.9% 7.6%
Electrical sector 853.5 1,299.8 717.8 1,093.1 18.9% 8.4%
Woolworths 666.8 1,015.4 621.2 946.0 7.3% 3.1%
Superdrug 189.6 288.7 184.4 280.8 2.8% 0.6%
Other **** + 137.6 209.5 123.3 187.8 11.6% 0.6%
General
Merchandise 994.0 1,513.6 928.9 1,414.6 7.0% 2.5%
sector
Total Group 2,588.2 3,941.3 2,264.2 3,448.0 14.3% 6.4%
Euro comparisons are at a constant exchange rate (1.5228)
** Includes NOMI, Screwfix and B&Q Shanghai.
*** Comprises Wegert, BUT, BCC, New Vanden Borre and Electric City
**** Comprises Entertainment UK, MVC and VCI (Entertainment UK and VCI not
included in LFL increase)
+ Sales from Wegert, BUT, NOMI, VCI and B&Q Shanghai are for the quarter
ended 31 December 1999
CHRISTMAS TRADING STATEMENT
Pro-Forma - at constant exchange rates and
assuming all businesses owned by Kingfisher throughout both years
Sales for the 48 week period ended 1 January 2000
1999/00 1998/99 % % Like-
(Wk 1-48) (Wk 1-48) increase for-like
£m Euro m £m Euro m
B&Q ** + 2,174.5 3,311.3 1,826.8 2,781.9 19.0% 8.5%
Castorama 2,034.0 3,097.4 1,847.0 2,812.6 10.1% 4.9%
DIY sector 4,208.5 6,408.7 3,673.8 5,594.5 14.6% 6.7%
Darty 1,062.4 1,617.8 985.9 1,501.3 7.8% 4.7%
Comet 886.0 1,349.2 785.3 1,195.9 12.8% 5.8%
Other
Electricals *** + 983.2 1,497.2 832.8 1,268.2 18.1% 1.7%
Electrical sector 2,931.6 4,464.2 2,604.0 3,965.4 12.6% 4.0%
Woolworths 1,752.8 2,669.2 1,667.4 2,539.1 5.1% 2.5%
Superdrug 784.9 1,195.2 743.3 1,131.9 5.6% 3.4%
Other **** + 346.4 527.5 312.0 475.1 11.0% 2.0%
General
Merchandise sector 2,884.1 4,391.9 2,722.7 4,146.1 5.9% 2.8%
Total Group 10,024.2 15,264.8 9,000.5 13,706.0 11.4% 4.8%
Euro comparisons are at a constant exchange rate (1.5228)
** Includes NOMI, Screwfix and B&Q Shanghai.
*** Comprises Wegert, BUT, BCC, New Vanden Borre and Electric City
**** Comprises Entertainment UK, MVC and VCI (Entertainment UK and VCI not
included in LFL increase)
+ Sales from Wegert, BUT, NOMI, VCI and B&Q Shanghai are for the period
ended 31 December 1999
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