Screwfix sales surge help Kingfisher raise profit forecast amid B&Q struggles

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Kingfisher, the parent company of B&Q, has raised its full-year earnings forecast even as half-year sales at the DIY retailer slowed, influenced by cautious British consumers delaying major purchases.

Comparable sales for B&Q across the UK and Ireland fell by 1.8 per cent during the second quarter. The decline was heavily driven by an 8.1 per cent drop in higher-value items, largely caused by reduced demand for bathroom products.

However, this represented an improvement compared to the 4.1 per cent reduction recorded in the first quarter, with periods of hot weather stimulating a recovery in seasonal goods.

Robust performance from Screwfix also supported the group, posting a 7.1 per cent surge in second-quarter revenues. This pushed combined UK and Irish same-store sales up by 1.6 per cent for the quarter and 0.4 per cent over the half-year period.

Kingfisher – which also operates European retail brands such as Brico Depot and Castorama – recorded a 9.9 per cent rise in underlying pre-tax profits to £404 million for the six months ending 31 July, aided by a one-off £14 million UK business rates refund.

On a statutory basis, pre-tax profits jumped 18.4 per cent to £400 million.

The group increased its guidance for full-year underlying pre-tax profit guidance to between £595 million and £635 million, up from the £565 million to £625 million previously pencilled in.

Outgoing chief executive Thierry Garnier said: “While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”

Mr Garnier announced plans in May to step down after nearly seven years to head up Netherlands-headquartered supermarket group Ahold Delhaize, but is remaining in place during the hunt for his successor.