Last checked at 24 May 2018 07:00
Thursday 24 May 2018: Q1 trading update to 30 April 2018
Financial highlights
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· Q1 LFL down 4.0% reflecting unusually adverse weather conditions which impacted footfall. Impact on LFL sales of weather related categories & temporary UK store closures:
o At Group level around 3% of 4% decline
o At operating company level:
§ B&Q c.-6% (outdoor products & snow related store closures)
§ Castorama France c.-4% (outdoor products)
§ Screwfix c.-2% (snow related store closures)
· Still on track to deliver Year 3 strategic milestones of our transformation plan
· Further £40m returned (13.5m shares) year to date via share buyback. Have now returned £500m of c.£600m capital return commitment(4); commencing next £50m of remaining £100m
Véronique Laury, Chief Executive Officer, said:
"It was a challenging start to the year with exceptionally harsh weather across Europe and weak UK consumer demand. This impacted footfall, especially sales of weather related categories. February and March were particularly affected with sales improving over the course of April and into May.
"We are on track to deliver our ONE Kingfisher strategic milestones for the third year in a row and we continue to see tangible delivery of our plan. Around 40% of our ranges are now unified and continue to be well received by customers. Sales of these ranges, excluding outdoor products, are up, and we expect to grow the full year Group gross margin, after clearance costs. Meanwhile, we are into the final year of our unified IT platform roll out with Poland now underway and Brico Dépôt France due to start soon.
"Market conditions continue to be mixed. The UK is uncertain, as demonstrated by recent weak retail sales data; France is encouraging, but volatile; whilst Poland continues to be supportive. We remain confident about delivering the business and customer benefits of our transformation plan, supported by the continued hard work and expertise of our colleagues."
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Q1 trading highlights by division (in constant currencies)
UK & IRELAND Total sales -3.7%. LFL -5.4% reflecting a weaker performance at B&Q and a solid performance at Screwfix · B&Q UK & Ireland sales -8.8%. LFL -9.0% reflecting ongoing lower footfall and soft demand patterns. Adverse weather conditions and temporary snow related store closures impacted LFL by c.6% · Screwfix sales up 9.0%. LFL +3.6% including a c.2% impact from temporary snow related store closures. Ten new outlets opened during Q1
FRANCE Total sales -3.6% (LFL -3.9%). Sales for the home improvement market (Banque de France data(5)) were down c.2% in Q1 · Castorama sales -8.1%. LFL -8.0% reflecting adverse weather conditions, impacting LFL by c.4%, and further investment to improve price position · Brico Dépôt sales +1.7%. LFL +0.8% reflecting good growth from the new unified ranges, which are starting to re-energise the Brico Dépôt offer, and lower exposure to outdoor products
OTHER INTERNATIONAL Total sales in Poland +3.0%. LFL +1.8% reflecting a supportive market with limited impact so far from the changes to Sunday trading laws
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Footnotes
(1) Like-for-like sales growth representing the constant currency, year on year sales growth for stores that have been open for more than a year
(2) Brico Depôt Spain & Portugal
(3) Includes Praktiker Romania acquired on 30 November 2017
(4) Through to end of FY 2018/19 (over and above the annual ordinary dividend)
(5) Includes relocated and extended stores http://webstat.banque-france.fr/en/browse.do?node=5384326
Contacts
Investor Relations | Tel: +44 (0) 20 7644 1082 | Email: investorenquiries@kingfisher.com |
Media Relations | +44 (0) 20 7644 1030 | corpcomms@kingfisher.com |
Teneo Blue Rubicon | +44 (0) 20 7260 2700
| Kfteam@teneobluerubicon.com |
This announcement can be downloaded from www.kingfisher.com. Data tables for Q1 2018/19 are available for download in excel format at http://www.kingfisher.com/index.asp?pageid=59
Our next announcement will be the Q2 sales update on 16 August 2018.
We can be followed on Twitter @kingfisherplc with the Q1 results tag #KGFQ1. Kingfisher American Depository Receipts are traded in the US on the OTCQX platform:(OTCQX: KGFHY) http://www.otcmarkets.com/stock/KGFHY/quote
Forward-looking statements
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This announcement has been prepared in relation to the financial results for the Quarter ended 30 April 2018. The financial information referenced in this announcement is not audited and does not contain sufficient detail to allow a full understanding of the results of the group. Nothing in this announcement should be construed as either an offer or invitation to sell or any offering of securities or any invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the group or an invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000 (as amended).
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