B&Q owner Kingfisher sees Q3 sales drop on weak French market
Like-for-like (LFL) trends worsened in the third quarter at B&Q and Screwfix owner Kingfisher as decent growth in the UK and Ireland was offset by falling sales in its largest market, France.
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The company, which is the largest DIY retailer in Europe and third-largest in the world, reported group sales of £2.82bn in the 13 weeks to 1 November. This was 3.6% lower than the year before due to adverse currency movements, compared with 0.9% reported growth in the first half.
On a constant-currency basis, third-quarter sales improved by 1%, but this was still much worse than the 4.6% organic growth seen in the first half.
"Trading conditions in our largest and most significant market, France, were particularly difficult and deteriorated across the quarter, impacted by the weak economic backdrop," said chief executive Ian Cheshire.
In France, where the company operates through its Castorama and Brico Dépôt chains, LFL sales declined by 4% with weak consumer confidence, higher taxes and a contracting housing and construction industry contributing to an "ongoing soft market".
In the UK and Ireland, LFL sales improved by 2.6% on last year due to a stronger UK economy and more buoyant housing construction. B&Q LFL sales rose 0.5%, while Screwfix LFL sales surged 13.1%.
Elsewhere, international LFL sales fell by 1.5% due to slower markets in Poland, Spain and China.
Overall group LFL sales fell by 0.9%, compared with the 1.8% growth seen in the first half.
Cheshire said that while the UK, and particularly Screwfix, had performed strongly, "we remain cautious on the outlook, especially in France".