B&Q-owner Kingfisher reported a continue ease back from a boom in DIY activity during the pandemic. Kingfisher sales declines by 4.1% on a reported basis to £6,809m in the six months to 31st July.
Despite Kingfisher sales falling back from last year, they remain well ahead of pre-pandemic levels. Like-for-like sales were 16.6% higher than before the pandemic.
“Kingfisher has delivered a very resilient first half of sales. While facing very strong comparatives from the prior year as well as a more challenging environment, LFL sales were 16.6% ahead of pre-pandemic levels with a sequential improvement from Q1 to Q2. This was driven by the extension of share gains in all our key markets, reflecting successful execution of our strategy, and resilient sales from both DIY and trade customers,” said Thierry Garnier, Chief Executive Officer.
Kingfisher also felt the pressure of falling margins as high comparatives last year saw operating margin fall 130 basis points to 36.7%. The group has set about a cost-cutting programme, but this is only partially offsetting the impact of rising costs.
Dividends for the period remained steady at 3.80p and investors will watch keenly to see if expansion in Poland and improvements to ScrewFix are enough to mitigate the cost of living crisis.