- As consumers took to do-it-yourself projects during the coronavirus pandemic, the company anticipates a rise in profit.
- Online sales have emerged as the major driving force behind increased sales.
- Castorama France and Brico Depot, Kingfisher’s other brands have benefitted immensely with the development
The coronavirus induced lockdown has certainly influenced the lifestyle of Britons as the demand for DIY items have gone up substantially. Riding on the surge of demand, Footsie listed home improvement solutions provider, Kingfisher Plc (LON: KGF) is expected to beat its annual profit expectations driven by solid performance in its sub-brands during the fourth quarter of the fiscal year 2021.
The B&Q and Screwfix DIY chains continued to witness strong demand during the final quarter of 2021. Castorama France and Brico Depot, Kingfisher’s other brands have benefitted immensely as consumers remained indoors for a considerable amount of time leading to increased consumption. Screwfix is expected to reach £2 billion of sales in the fiscal year 2021 as it witnessed strong sales in December, particularly in UK & Ireland.
The home improvement company, Kingfisher, has continued to experience strong online sales, demand across its markets and therefore recorded a growth of 6.5 per cent in its like-for-like sales in the financial year to date (1 February 2020 to 9 January 2021) period. In addition, Kingfisher expects to record the annual adjusted pre-tax profit in the range of £667-£742 million.
While the company has exceeded the expectations in the fourth quarter, the uncertainties with respect to the rising number of coronavirus cases and lockdown continue to restrict company’s vision. However, the company is making constants efforts to lay a strong foundation for sustainable long-term growth. The 'click and collect' services has been doing really well for the company as all the 1300 plus stores are operating under essential retail category. Notably, an essential retailer are allowed to operate despite the lockdown restrictions.
The company is on track to return the business rates relief availed during the heightened crisis and has made no new claims under furlough programmes in the UK.
Shares of Kingfisher Plc have rallied by more than 30 per cent in the past one-year period. Kingfisher was among the top performers in the FTSE 100 index. With a market capitalisation of £5.8 billion, the shares last traded at GBX 284.60, on 12 January 2021 from the previous day close.