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Kingfisher Continues To Experience Strong Demand

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Kingfisher plc (‘Company’, ‘Group’ or ‘Kingfisher’) is today providing an update on Q2 trading ahead of its Half Year results for the period ending 31 July 2020.

Q2 trading to 18 July

As announced on 17 June 2020, Kingfisher’s Q2 20/21 Group LFL sales (to 13 June) were up 21.8% reflecting strong e-commerce growth and the phased reopening of stores in the UK and France from mid-April. Since then, Kingfisher has continued to experience strong demand across its markets, and Q2 20/21 Group LFL sales (to 18 July) are up 21.6%. Year to date (to 18 July), Group LFL sales are down 3.7%.

Based on the strong sales seen to date in Q2, combined with cost reductions benefiting H1 (some of which are non-recurring), the Company anticipates its half year adjusted pre-tax profit to be ahead of prior year.

LFL sales by month

Monthly sales

% LFL(1) Change

 

May 2020

Jun 2020

UK & Ireland

+15.5%

+25.9%

France

+23.6%

+33.0%

Poland

+16.3%

+15.3%

Romania(2)

(14.3)%

+25.7%

Iberia

(49.6)%

+25.5%

Group LFL(3)

+14.3%

+25.1%

E-commerce sales(4)

+202.1%

+225.2%

June and July LFL sales by week (to 18 July 2020)

Sales: 4 weeks to 27 June 2020

% LFL(1) Change

 

June 2020

 

week 1(5)

week 2(5)

week 3(5)

week 4(5)

UK & Ireland

+26.3%

+29.5%

+27.2%

+22.8%

France

+41.4%

+38.4%

+32.4%

+16.6%

Poland

+11.7%

+0.7%

+29.2%

+13.5%

Romania

+30.2%

+20.3%

+19.8%

+17.8%

Iberia

+15.2%

+24.7%

+24.8%

+23.2%

Group LFL(3)

+28.7%

+27.7%

+28.5%

+18.8%

E-commerce sales(4)

+207.4%

+211.3%

+214.3%

+202.0%

Sales: 3 weeks to 18 July 2020

% LFL(1) Change

 

July 2020

 

week 1(5)

week 2(5)

week 3(5)

UK & Ireland

+18.7%

+17.9%

+19.6%

France

+25.4%

+27.2%

+27.4%

Poland

+14.3%

+14.3%

+15.2%

Romania

+28.0%

+21.1%

+16.8%

Iberia

+17.1%

+25.1%

+19.8%

Group LFL(3)

+20.3%

+20.7%

+21.3%

E-commerce sales(4)

+203.7%

+190.0%

+183.3%

Outlook
Our top priority remains ensuring the health and safety of our colleagues and customers, serving our markets as a retailer of essential goods, and protecting our business for the long term. The operational and financial actions we have taken, together with the strong demand for home improvement we are currently seeing, give us a sound footing in the current crisis and beyond.

While we are entering the second half with a favourable trading backdrop, second half visibility remains low given uncertainty around COVID-19 and the wider economic outlook. As such, no specific financial guidance is provided for FY 20/21.

We look forward to providing a more detailed update at the Half Year results on 22 September 2020.

Source : Kingfisher PLC

Footnotes

(1) LFL (like-for-like) sales growth represents the constant currency, year on year sales growth for stores that have been open for more than one year. Stores temporarily closed or otherwise impacted due to COVID-19 are also included.

(2) Kingfisher’s subsidiary in Romania prepares their financial statements to 31 December. Their monthly results presented are for April and May, i.e. one month in arrears. The weekly results presented have no corresponding delay.

(3) Group LFL includes total e-commerce sales. Group LFL also includes Russia and excludes Koçtaş (Kingfisher’s 50% JV in Turkey).

(4) E-commerce sales are total sales derived from online transactions, including click & collect. This includes sales transacted on any device, however not sales through a call centre. E-commerce sales change includes only UK & Ireland, France and Poland.

(5) June and July weekly sales figures are for Sunday-to-Saturday weeks from 31 May 2020 (compared against prior year Sunday-to-Saturday weeks from 2 June 2019). The figures are provisional, and exclude certain non-cash accounting adjustments relating to revenue recognition.

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter. 

22 July 2020

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