Pre-Close Trading Update
Kingfisher PLC
27 July 2006
EMBARGOED UNTIL 0700 HOURS
Thursday 27 July 2006
Kingfisher plc
Pre-close trading update to 15 July 2006
11 weeks ended 15 July 2006 24 weeks ended 15 July 2006
Retail Sales % Total Change % LFL % Total % LFL
Change Change Change
UK 1.3 -1.3 -2.3 -4.3
France 6.9 1.3 7.2 1.5
Rest of Europe (1) 26.6 8.4 27.9 9.2
Asia (2) 76.2 9.0 73.9 10.1
Total 8.7 1.0 6.0 -0.6
All figures are on a constant currency basis, joint venture and associate sales
are not consolidated
(1) Rest of Europe sales includes Castorama Poland, Castorama Italy, Brico
Depot Spain, B&Q Ireland and Castorama Russia.
(2) Asia sales include B&Q China and B&Q Home in South Korea.
Gerry Murphy, Group Chief Executive, said:
'Kingfisher's second quarter featured a strong international performance and
early signs of progress at B&Q in the UK despite a continuing weak consumer
market for home improvement.
'Kingfisher's international development programme has continued on track this
year with 20 new stores opened so far and good like-for-like growth from stores
open for more than one year. In France, Castorama and Brico Depot have
delivered solid growth in a more competitive market. Our established businesses
in Poland and Italy performed well, as did the enlarged B&Q China business
having completed the integration of the OBI stores acquired last year.
'The UK consumer home improvement market has not yet returned to growth despite
a pick-up in general household consumption. Against this tough background B&Q
benefited from targeted promotions and new in-store 'Service Squads.''
Kingfisher plc will announce its Interim Results for the 6 months to 29 July
2006 on 14 September 2006.
All figures and comments below refer to the 11 weeks to 15 July 2006
UK
B&Q total sales were flat (-2.4% LFL) in the quarter to date reflecting
continuing market weakness. Gross margin percentage is expected to be similar
to the same quarter last year. Kingfisher's UK Trade businesses delivered strong
total sales growth of 27.5% (+15.3% LFL) with the performance of the new
Screwfix Trade Counters being particularly encouraging.
FRANCE
In a more competitive French market Castorama sales grew by 2.8% (+0.5% LFL)
despite the closure of three stores prior to their re-opening as Brico Depots.
Brico Depot sales grew 13.0% (+2.5% LFL) and the business made good progress in
implementing a new SAP information technology platform to support future growth.
REST OF EUROPE
Sales in other European markets grew strongly with 8.4% LFL and new stores
combining to deliver 26.6% total sales growth. Castorama in Poland and Italy
both delivered solid sales growth despite challenging local markets. Store
expansion continued including Castorama's second store in Russia which opened in
July in St Petersburg and the first Brico Depot store in Poland.
ASIA
B&Q China sales were ahead 74.4% (+9.0% LFL) driven by new store openings and
the acquisition of the OBI China stores last year. The programme to integrate
the former OBI stores was completed during the quarter, ahead of schedule.
Enquiries:
Ian Harding, Group Communications Director 020 7644 1029
Nigel Cope, Head of Communications 020 7644 1030
Kingfisher plc is Europe's leading home improvement retailer and the third
largest in the world, with over 680 stores in 11 countries in Europe and Asia.
Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct.
Kingfisher also has a 21% interest in, and strategic alliance with, Hornbach,
Germany's leading DIY Warehouse retailer, with over 120 stores in Germany and
seven neighbouring countries.
Further copies of this announcement are available at www.kingfisher.com or by
application to: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London,
W2 6PX.
This information is provided by RNS
The company news service from the London Stock Exchange
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