Kingfisher's Half-Year Results Reveal Decline in Big-Ticket Sales at B&Q
UK: Kingfisher, the parent company of B&Q, reported weak demand for big-ticket items like kitchens and bathrooms, resulting in a nearly 12% decline in such sales. The company’s half-year sales figures showed an overall marginal drop of 1%, generating £2,075M (2.7 million USD) compared to last year's £2,101M (2.7 million USD). However, B&Q experienced positive growth in core categories and resilient seasonal sales, which helped offset the declines in big-ticket items.
In contrast, trade sales saw a positive increase, with TradePoint sales up by around 7%. Kingfisher described trade sales of big-ticket items as “resilient,” particularly in the kitchen, bathroom, and storage categories, with a notable 22% year-on-year increase in TradePoint customers.
Kingfisher reported a roughly 6% rise in company-wide retail profits, earning £325M (426 million USD) in the first half of 2024, up from £306M (401 million USD) last year. This profit increase was partially offset by slightly higher operating costs, mainly due to increased staff costs and the opening of over 50 new stores across its brands.
CEO Thierry Garnier stated that the half-year results were “in line with our expectations,” highlighting continued customer activity in home repair and maintenance. He noted that while demand for big-ticket categories remained weak, seasonal category sales trends improved since early July. Garnier also mentioned that Kingfisher tightened profit guidance and upgraded free cash flow guidance for the year, indicating a focus on managing costs effectively and seizing market share opportunities. With signs of a housing market recovery in the UK, Kingfisher is positioned for growth in 2025 and beyond. Currently, B&Q operates 309 retail stores in the UK and Ireland.
Source: KBB Review