Second Quarter Pre-close Upda

RNS Number : 1310W

Kingfisher PLC

23 July 2009

 



Thursday 23 July 2009

Kingfisher plc reports total sales ahead 1% in constant currencies, down 2% on a like-for-like basis, for the 10 weeks to 11 July 2009

Constant currencies	10 weeks to 11 July 2009		23 weeks to 11 July 2009
Retail Sales (1)	% Total Change	% LFL  Change	% Total Change	% LFL Change
France (2)	0.2%	(2.9)%	1.0%	(2.9)%
UK (3)	0.1%	(0.6)%	1.6%	0.2%
Other International (4)	4.0%	(2.7)%	3.8%	(4.4)%
Total Group	0.9%	(1.9)%	1.7%	(1.8)%

• All figures are on a constant currency basis. Joint Venture (JV) and Associate sales are not consolidated. Data is provided for the 23 and 10 weeks to 11 July 2009, with the exception of Russia and China which are reported for the 26 and 13 weeks to 30 June 2009. 

• Castorama and Brico Dépôt.

• B&Q, Screwfix (comparative figures include the now closed Trade Depot).

• Poland, China, Spain, Ireland and Russia. Prior year figures have been restated to exclude Italy.

Ian Cheshire, Kingfisher's Group Chief Executive, said:

'We have continued to perform well in a tough environment, profitably growing market share, strengthening our leadership position in Europe and progressing our seven point Delivering Value plan. B&Q in the UK was again stronger than anticipated as it continued to capitalise on the growing trend for home and garden DIY, low cost room makeovers and competitor withdrawal in the bigger ticket categories.

'Right across the group our now well established focus on driving profitable sales, whilst vigorously controlling costs and cash, is serving us well as we trade through these difficult times.'

All figures and comments below refer to the 10 weeks to 11 July (1) in constant currencies

FRANCE 

Castorama sales grew 1.1% (-0.8% LFL), supported by its modernisation programme. Brico Dépôt sales were down 0.9% (-5.6% LFL), impacted by continued weakening trade demand from a slow down in housing starts and big project planning consents. Gross margins in France remained broadly flat with higher own-brand sales penetration and buying optimisation continuing to offset increased promotional activity.

UK 

B&Q total sales grew 1.5% (+0.7% LFL) with sales of seasonal categories down around 2% following strong Q1 seasonal sales (+30%) and tougher year on year comparative figures (Q2 2008/09 seasonal sales +25%). Sales of core DIY and decorative products continued to remain relatively resilient (broadly flat) with sales of kitchens, bathrooms and bedrooms performing particularly well helped by new ranges as well as recent competitor withdrawal. The gross margin percentage continued to benefit from lower mark down activity in seasonal ranges and supply chain efficiencies. Screwfix sales declined by 6.0% in a much more challenging trade market. 

  OTHER INTERNATIONAL

Sales in other international markets grew 4.0% (-2.7% LFL). Castorama in Poland delivered sales growth of 12.5% (+3.5% LFL), supported by strong consumer spending in decoration and a continued good response to the new garden catalogue. B&Q China declined 14.1% (-13.2% LFL), reflecting the weak housing market. Early signs of a pick-up in housing activity are yet to translate into stronger consumer demand for home improvements. The repositioning plan previously announced with the preliminary results in March 2009 remains on track with the store portfolio having been rationalised from 63 to 48 as at 30 June 2009.

Kingfisher plc will announce its interim results for the 6 months to 1 August 2009 on 17 September 2009. 

Forward-looking statements

The financial information contained in this announcement has not been audited. Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.

Enquiries:

Ian Harding, Group Communications Director	020 7644 1029
Nigel Cope, Head of Communications	020 7644 1030
Sarah Gerrand, Head of Investor Relations	020 7644 1032

Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with over 820 stores in eight countries in Europe and China. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 21% interest in, and strategic alliance with Hornbach, Germany's leading large format DIY retailer.  

Further copies of this announcement can be downloaded from www.kingfisher.com or by application to: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London, W2 6PX.

Delivering Value - seven key steps to delivering a step-change in shareholder value:

• Driving up B&Q's profit 

• Exploiting our UK Trade opportunity 

• Expanding our total French business 

• Rolling out in Eastern Europe 

• Turning around B&Q China 

• Growing Group sourcing 

• Reducing working capital

 

END

 

 

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