Share Dealing
B&Q sales down at Kingfisher
Rob Langston, 22 July 2011
Kingfisher (KGF.L) said it remains 'on track' to deliver strong sales growth, despite tough conditions in the second quarter.
Its UK & Ireland operations saw sales drop 5.5 per cent on a like-for-like basis, with B&Q reporting a 6.7 per cent like-for-like drop in sales.
Sales of outdoor seasonal products were down by more than 20 per cent, as a following a strong first quarter performance, poor weather and the collapse of Focus DIY, which saw clearance activity.
However, in its French operations saw 3.7 per cent like-for-like increase in sales during the second quarter with growth from its Castorama and Brico Dépôt chains.
Ian Cheshire, group chief executive of Kingfisher, said, 'The UK market remains challenging compounded by disruption in the second quarter from heavy stock clearance activity by a major competitor closing down.'
Cheshire said the clearance activity by Focus DIY was 'largely complete', with B&Q set to take advantage of the former Focus sites it had acquired.
He added, 'Gross margins are ahead in all our major markets so far this quarter, supported by more direct sourcing and the gradual introduction of common ranges.
'These are testing times for retailers, particularly in the UK, but also an opportunity for strong businesses such as ours to strengthen their position.
'We expect to emerge from this year in excellent shape and well prepared to start delivering the next phase of our growth plans.'
To receive more relevant articles like this one, why not sign up to our weekly newsletters, click here
Advertisement
Free Magazine: How To Invest For Income
Free Magazine: How To Invest For Income In this free edition of MarketViews, Peter Temple highlights key features that can make income-based investing generate such good results. Get your free copy here
Free Guide: 8 Common Trading Indicators
Get this free guide to find out how to use technical indicators to give you a sense of what the market will do next. Get your free copy here.
No hassle and no admin fees. Open an account now with The Share Centre. Find out more.
A free guide to Gold Investment
Physical Gold protects against global economic downturn by providing crucial portfolio balance. You can buy gold bars for your UK pension and receive up to 40% price discount via tax relief. Buy tax-free gold coins as an alternative to poor interest rates. Find out more and download this free guide to gold investment.
The TaxGuide.co.uk has a wealth of tips and advice from working out your tax bill, through to the latest personal tax rules. Get your personal tax tips today.
FREE Report: Inside Investment Trusts
Written by the team behind What Investment, this exclusive FREE report covers:
- Why Investment Trusts are better than Unit Trusts
- How new legislation is broadening the appeal of Investment Trusts
- Where to look for buying opportunities
- Why now is the time to buy Investment Trusts
- The Investment Trusts to invest in at the moment


Comments
Please register or login to comment on this article.