B&Q sales tick up thanks to warm weather – however proprietor Kingfisher’s share worth nonetheless falls because it hunts a brand new boss
- Across the UK and Ireland, sales at DIY chain B&Q rose by 2.eight% over the interval
- Owner Kingfisher’s share worth is down three.four% to 233.5p this morning
Warm weather helped B&Q get pleasure from an increase in sales in the three months to 30 April, proprietor Kingfisher has revealed.
Across the UK and Ireland, sales at DIY chain B&Q rose by 2.eight per cent on a like-for-like foundation over the interval.
Kingfisher’s Screwfix enterprise noticed like-for-like sales rise four.5 per cent over the first quarter, with 4 new shops opened.
Kingfisher’s share worth is down three.43 per cent or eight.3p to 233.5p this morning.
Sales: Warm weather helped B&Q get pleasure from an increase in sales in the three months to 30 April
The buying and selling replace comes as the group searches for a successor to under-fire boss Veronique Laury.
The group introduced in March that she deliberate to step down, however has not but set a departure date and Ms Laury will stay in submit till a successor is appointed.
Kingfisher’s annual report this month confirmed that Ms Laury’s complete pay package deal grew by 11 per cent to £1.8million thanks to a hefty wage hike and bonus awards.
Ms Laury picked up a four per cent, or £30,800, wage hike, a £522,000 annual money award and £333,700 in long-term bonus shares.
Commenting on as we speak’s replace, Ms Laury mentioned: ‘The group delivered constructive sales development in the first quarter, with sales of unified and distinctive ranges persevering with to develop forward of non-unified ranges.’
She added: ‘At this early stage of the 12 months our expectations for the full 12 months are unchanged, and we stay assured in our capability to ship vital monetary advantages over time.’
Kingfisher mentioned its French operations remained beneath stress, with sales down 2.four per cent throughout Castorama and 5.1 per cent decrease at Brico Depot.
Products: Looking forward, the group mentioned it plans to launch plenty of new ‘distinctive’ ranges
Poland and Romania each exhibited strong development of two.9 per cent and 6 per cent respectively, whereas the agency’s worldwide arm expanded zero.7 per cent to £531million. Total group sales elevated by zero.eight per cent over the interval.
Looking forward, the group mentioned it plans to launch plenty of new ‘distinctive’ ranges, together with surfaces, decor and bogs throughout the group, in addition to kitchens at B&Q.
Connor Campbell, an analyst at SpreadEx, mentioned: ‘There was little in Kingfisher’s first quarter replace to present a DIY repair for the losses seen this month.
‘While it did submit a zero.eight per cent rise in like-for-likes, the data that this was primarily down to a weather-boosted efficiency from B&Q tempered any pleasure.
‘This particularly as Brico Depot added to the firm’s French headache, the model seeing a 5.1 per cent drop in comparable sales, greater than double the decline suffered by regular lowlight Castorama.
‘An absence of change to its full 12 months forecasts was welcome; the absence of a brand new CEO announcement was not, contributing to the inventory’s three per cent decline.’
Neil Wilson, chief market analyst at Markets.com, mentioned: ‘Kingfisher is as we speak internet hosting an Innovation Day for buyers and analysts in London as we speak the place it’s going to showcase some spangly new merchandise.
‘All very good, however one quite feels that buyers would like to see what the new technique goes to seem like and who the subsequent CEO might be first.’
He added: ‘Pressure on administration to come up with a brand new plan will mount and this might nicely embrace a take a look at breaking up this firm into smaller elements. Sometimes you aren’t better than the sum of your elements.’