B&Q blames sales dip on wet Easter but predicts heatwave gain

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DIY chain owner Kingfisher is top FTSE 100 riser as it sticks to full-year profit outlook

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A wet and cold Easter hit sales of barbecues and garden products at the home improvement chain B&Q, but it hopes to make up lost ground during the current heatwave.

Kingfisher, which owns B&Q along with Screwfix in the UK, and Castorama and Brico Dépôt across six European countries, said like-for-like sales at established outlets in the UK and Ireland dipped 0.9% between February and April.

Within that figure, B&Q sales fell 4.1% and Screwfix revenue climbed 4.1%.

Overall group sales were down 0.9% in the three-month period, with declines at Castorama and Brico Dépôt.

Kingfisher blamed the rain and cold around Easter, which put people off buying BBQs, garden furniture and plants. Seasonal products account for a fifth of the company’s revenues.

B&Q sold fewer bathroom fixtures, a fall partly offset by a 4.5% rise in kitchen sales after it brought in new ranges. The overall market for bathroom sales in the UK was down 2% in the first quarter, while the market for kitchens was flat.

The company plans further investment in its own-brand bathroom ranges later this year.

Kingfisher stuck to its full-year outlook, cheering investors. It expects to make a pre-tax profit of between £565m and £625m this year, a forecast that drove its share price 3% higher on Tuesday, topping the FTSE 100 index.

Thierry Garnier, Kingfisher’s chief executive, said: “We delivered a resilient start to the year, executing well and gaining market share against a soft market backdrop.

“While mindful of the consumer environment, we remain absolutely focused on delivering our strategy, disciplined gross margin and cost management, and consistent shareholder returns.”

Russ Mould, investment director at the platform AJ Bell, said: “Blaming the weather for weak trading is often seen in the ‘dog ate my homework’ category of excuses by the market, but the fact it has not forced any downgrades means Kingfisher has kept investors on side.

“Among the areas of positivity is the continued strong growth in the Screwfix business. Kingfisher, like several of its peers, is pursuing trade customers, who are often more reliable and consistent sources of revenue than ordinary consumers. That’s because materials and tools are not a nice-to-have for them but essential to their day job.

“This strategy is paying off in spades as the company makes market share gains. These sales could become increasingly important as pressures on consumer spending build, although as well as putting people off DIY projects, the do-it-for-me work on which its trade buyers rely may also suffer against a difficult backdrop.”

Kingfisher’s sales to trade customers rose 17%, excluding Screwfix.

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