AUS
NZ
UK
CA
USA
IND
Highlights
- Q3 sales flat at £3.2 billion, with like-for-like (LFL) sales declining by 1.1%.
- UK & Ireland showed growth driven by Screwfix (+1.8% LFL) and TradePoint (+4.9% LFL).
- Adjusted profit before tax (PBT) guidance narrowed to £510–540 million for FY 24/25.
Kingfisher plc (LSE:KGF), the international home improvement retailer, has released its Q3 sales performance for the 2024/25 financial year, reporting £3.2 billion in total sales. While sales were flat on a constant currency basis, reported sales fell by 0.6% as market uncertainties impacted consumer confidence, particularly in the UK and France.
Regional Overview
- UK & Ireland:
- Sales growth was driven by strong performances from Screwfix and TradePoint, achieving like-for-like (LFL) sales growth of 1.8% and 4.9%, respectively.
- B&Q’s e-commerce marketplace delivered impressive growth, with gross merchandise value (GMV) up 45%.
- France:
- Sales were in line with market trends but weakened in October due to dampened consumer sentiment and unfavorable weather conditions.
- Poland:
- Market share gains were supported by a recovery in "big-ticket" sales, reflecting improving consumer demand for high-value items.
Performance by Category
- Core Products (69% of sales): A slight LFL decline of 0.4%, driven by steady demand for repair and maintenance activities in existing homes.
- Big-Ticket Items (16% of sales): Sales fell by 4.0% LFL, though trends improved across key banners like B&Q, Brico Dépôt France, and Castorama Poland, aided by the introduction of new product ranges.
- Seasonal Products (15% of sales): October sales were impacted by wetter and milder-than-average weather, resulting in a 0.9% LFL decline.
Market and Financial Outlook
- Kingfisher tightened its full-year adjusted profit before tax guidance to a range of £510 million to £540 million, slightly down from the earlier range of £510 million to £550 million.
- Free cash flow guidance remains unchanged at £410 million to £460 million, supported by a significant reduction in net inventory and tight cost controls, including £120 million in structural cost savings.
- The company’s ongoing £300 million share buyback program is set to conclude by March 2025, reinforcing its commitment to shareholder returns.
Q4 Progress and Market Trends
Trading at the start of Q4 has shown improvement, with group LFL sales down only 0.5% for the three weeks ending November 23, 2024. While the UK & Ireland and Polish markets are tracking on the higher end of expectations, the French market continues to lag.
