Forex and weather continue to hurt Kingfisher

Home improvement retail company Kingfisher reported a decline in like-for like fourth quarter sales as the group battled against weak consumer confidence, unfavourable foreign exchange and poor weather in the UK.

Home improvement retail company Kingfisher reported a decline in like-for like fourth quarter sales as the group battled against weak consumer confidence, unfavourable foreign exchange and poor weather in the UK.

The DIY retailer, which operates the B&Q and Screwfix chains, said lfl sales fell 3.4% on a constant currency basis but rose 1.5% on a reported basis. Underlying sales in UK and Ireland fell 5.8% during the quarter. In France sales were down 2.4% while other international rose 0.3%.

Total fourth quarter sales rose 1.5% for the 14 weeks to February 2nd 2013 compared to the 13-week period last year.

Lfl sales at B&Q fell a worse than expected 6.4%, "reflecting the generally weak consumer backdrop in the UK and a particularly challenging environment in Ireland where our nine stores are now subject to an Examinership process," the group explained.

Equivalent sales at Castorama slid 0.4% while Brico Depot, for trade professionals and heavy DIYers, fell 4.6% as the building market slowed.

Otherwise the group said it expects full year adjusted profit before tax to be in line with the consensus of analyst expectations.

Chief Executive Ian Cheshire said: "We have had a tough fourth quarter, ending what has been a tough year impacted by unfavourable foreign exchange, particularly poor weather in the UK and weaker consumer confidence in our major markets.

On a brighter note, he added: "We end the year in good shape with a strong balance sheet and higher market share. Looking ahead we will continue to actively manage the business in these challenging markets with particular focus on improving our customer offer and optimising our cash generation."

CJ

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022