UK-based DIY retailer Kingfisher reported their Q3 results on Wednesday, which show a major decline in sales across almost all countries where the retailer operates.
Shares fell over 5% in early trade on Wednesday as the company blamed poor weather for the slow results.
“The problem seems to be unseasonably warm temperatures dampening demand for insulation and heating products. Blaming the weather never goes down well with the market,” said AJ Bell’s Russ Mould.
In Q3, sales amounted to £3.2 billion, with a total sales decrease of -2.1% (reported) and -2.7% (constant currency).
Like-for-like (LFL) sales experienced a -3.9% decline, including a -0.4% calendar impact. However, the company said overall volumes are showing signs of improvement.
Furthermore, data shows that retail and trade consumer trends remained resilient in the UK.
France was the major weak spot for Kingfisher with sales crumbling in Q3. In France, sales were down 8.7% at reported currency and 8.5% at constant currency rates.
According to the CEO Thierry Garnier,” In France, our performance was impacted by a weak retail market, as well as a delayed start to insulation, plumbing and heating sales – to which Brico Dépôt is more heavily weighted – due to unusually warm autumn weather, and strong prior year comparatives in these categories.”
Sales in Poland were up 2.9% at reported currency and 7.5% at constant currency.
Garnier commented on this by saying that “In Poland we are seeing early signs of recovery in the trading trend, against an incrementally more positive consumer and economic backdrop.”
Thierry Garnier further added that, ““We continue to focus on our execution and driving our strategy forward. Our online marketplaces are growing rapidly, with B&Q’s marketplace reaching 35% of its e-commerce sales in October.”
Adding that, “Screwfix has continued its international expansion, by launching as a pure- play online retailer in six new European countries, and opening four new stores in France in the quarter. We also continue to harness AI and data to support sales, profit and cash, including by growing our retail media proposition across the Group.”