B&Q sales boost Kingfisher profits
Kingfisher has reported a rise in profits for the first quarter of 2009, bolstered by B&Q’s strong sales figures.
With the warmer weather attracting more shoppers, B&Q’s parent firm Kingfisher has announced a rise in first quarter profits, bolstered by the DIY store’s positive sales.
In the 13 weeks to 2 May, Kingfisher reported a 10% increase in total sales and a 40% increase in the company’s retail profit.
In the UK, total sales grew by 2.9% to £1,163 million, which Kingfisher attributed to the temperate weather conditions as well as a later Easter than usual. UK retail profit grew by almost 90% to £61m compared to the same time last year.
B&Q in particular performed well in the first quarter of 2009. Total sales rose by 4.6% to £1,043m. The warm weather encouraged shoppers to purchase outdoor products, which saw an increase of 30%. Kitchen, bathroom and bedroom sales also experienced a rise in sales.
Sales in France for Kingfisher-owned stores also witnessed a boost, with sales up 1.7%.
Ian Cheshire, Group Chief Executive, said: “We have made a good start to the year, boosted by better weather and a later Easter.
“B&Q in particular capitalised well on this increased demand, growing its market share and doubling its retail profit.”
Mr Cheshire went on to state that because of the economic downturn, trading conditions would remain difficult for all retailers.
He said: “Looking ahead, we are unlikely to see a weather driven seasonal bounce in demand again in 2009 and we continue to plan for a particularly tough balance of the year in our major markets. As a strong business with tight control over margins, costs and cash we are increasingly better placed to benefit when consumer demand improves.”
