Kingfisher results set for top of guidance

Kingfisher said its annual results would be near the top of guidance after a strong third quarter for the DIY retailer.

Total sales fell 6.3% to £3.25bn in the three months to the end of October from a year earlier and were down 2.4% on a like-for-like basis at constant currency. On that basis, sales were 15% higher than two years earlier, before the Covid-19 lockdown boosted sales of home improvement products.

Total sales in the UK and Ireland, where Kingfisher owns B&Q and Screwfix, fell 2.1% from a year earlier and sales in France fell 9.5%. Fourth-quarter sales to 13 November rose 13.2% from two years earlier or 0.4% like-for-like.

The FTSE 100 company said second-half like-for-like sales growth would be towards the higher end of its -7% to -3% guidance. Annual adjusted pretax profit will be near the higher end of its previous guidance for £910 million to £950 million, the company said.

Thierry Garnier, Kingfisher's chief executive, said: "Kingfisher has delivered another successful quarter, with strong growth across both retail and trade channels, and across all categories. We have entered our final quarter with positive momentum and now expect sales and profits to be towards the higher end of our previously guided ranges."

Sales of DIY and homewares have boomed during the pandemic as households have adapted to home working, spent more on their habitat and moved house. Garnier said consumer spending was normalising but that supportive trends would continue.

Keith Bowman, an analyst at Interactive Investor, said: “Against a backdrop of tough 2020 comparatives, Kingfisher has reported a steady if not blowout third-quarter trading update."

Kingfisher shares fell 4.8% to 320.88p at 08:59 GMT.