Kingfisher has raised its annual profit outlook despite a decline in sales at B&Q, as UK consumers continued to hold back on expensive home improvement projects.
The owner of B&Q said like-for-like sales at the DIY chain in the UK and Ireland fell 1.8 per cent in its second quarter, with so-called big-ticket purchases down 8.1 per cent, driven largely by weaker demand for bathroom products.
The decline nevertheless represented an improvement from the 4.1 per cent fall recorded in the first quarter. Kingfisher said warmer weather had helped revive demand for seasonal products during the period.
Its Screwfix business remained a stronger performer, with sales rising 7.1 per cent in the second quarter. That helped drive a 1.6 per cent increase in overall like-for-like sales across Kingfisher’s UK and Ireland operations during the quarter, while sales for the first half rose 0.4 per cent.
The group, which also owns European home improvement brands including Castorama and Brico Dépôt, reported a 9.9 per cent increase in underlying pre-tax profit to £404mn for the six months to July 31.
The result was partly boosted by a £14mn one-off refund of UK business rates. Statutory pre-tax profit increased 18.4 per cent to £400mn.
Kingfisher subsequently raised its full-year guidance for underlying pre-tax profit to between £595mn and £635mn, compared with its previous range of £565mn to £625mn.
The upgraded outlook comes despite continuing uncertainty over household spending, with consumers showing greater caution over large discretionary purchases.
Thierry Garnier, Kingfisher’s outgoing chief executive, said: “While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”
Garnier announced in May that he would step down after almost seven years to become chief executive of Netherlands-based supermarket group Ahold Delhaize. He remains at Kingfisher while the company searches for his successor.
The contrasting performance across B&Q and Screwfix highlights the uneven nature of consumer demand, with shoppers continuing to spend on smaller and more immediate home improvement needs while postponing larger renovation projects.
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