* Q3 sales up 15% on two-year basis
* Forecasts full-year profit towards higher end of guidance
* Shares fall 4.5% on absence of outright profit upgrade
(Adds details, shares)
By James Davey
LONDON, Nov 19 (Reuters) - British home improvement retailer
Kingfisher on Friday forecast full-year profit towards
the higher end of previous guidance, with demand supported by
industry trends it believes will endure, including more working
from home.
The group, which owns B&Q and Screwfix in the United Kingdom
and Castorama and Brico Depot in France and other markets, had
in September forecast 2021-22 adjusted pretax profit of 910-950
million pounds ($1.23-$1.28 billion), up from 786 million in
2020-21.
However, shares in Kingfisher were down 4.5% at 0849 GMT,
paring 2021 gains to 19%, reflecting some disappointment over
the absence of an outright profit upgrade and a lack of
visibility on the outlook for the 2022-23 year.
Prior to Friday's update analysts' average forecast for
2021-22 profit was 952 million pounds, indicating they expected
an upgrade.
On Friday it said like-for-like sales fell 2.4% in the three
months to Oct. 31 against high numbers a year ago when it
benefited from soaring demand during the COVID-19 pandemic.
But like-for-like sales on a two-year basis were up 15.0%.
Kingfisher also made a good start to its fourth quarter,
with like-for-like sales to Nov. 13 up 0.4% year-on-year and up
13.2% on a two-year basis.
It said it saw strong third quarter growth across both
retail and trade channels, and across all product categories,
winning market share.
"Demand remains supported by what we believe are enduring
new industry trends, including more working from home," said CEO
Thierry Garnier.
British retailers are battling supply chain disruptions and
labour shortages.
However, Garnier said that since the start of this year
Kingfisher had maintained, and in many cases improved, its
product availability.
"We have also continued to manage inflation pressures
effectively, while retaining highly competitive pricing," he
said.
Kingfisher forecast second-half like-for-like sales towards
the higher end of its previously guided range of down 7% to 3%
and up 9% to 13% on a two-year basis.
The pandemic has also boosted shopping online. Kingfisher
highlighted third quarter e-commerce sales growth of 133% on a
two-year basis, with online sales 16% of group sales.
($1 = 0.7410 pounds)
(Reporting by James Davey; editing by Guy Faulconbridge, Paul
Sandle and Emelia Sithole-Matarise)
Kingfisher (KGF)
