LONDON (dpa-AFX) - Home improvement retailer Kingfisher Plc (KGF.L) reported Thursday a 1.3 percent rise in third-quarter like-for-like sales, as strong performance in France and other international regions helped offset a slight decline in UK & Ireland amid a challenging consumer environment.
For the 13 weeks ended October 29, the company's total sales grew 4.6 percent to 2.81 billion pounds, with growth in each of the three main operating divisions. On a constant currency basis, sales rose 3.5 percent.
Group Chief Executive Ian Cheshire said, 'Our well-established programme of self-help initiatives ('Delivering Value') has continued to drive our growth despite these difficult times for European consumers.'
Sales in the UK & Ireland division, which operates B&Q and Screwfix, rose 1.2 percent to 1.06 billion pounds as all units achieved growth in a continuing challenging consumer environment. On a like-for-like basis, sales edged down 0.7 percent.
During the quarter, warm autumn weather boosted sales of outdoor seasonal products in B&Q with garden furniture sales up 68 percent. The results also benefited from the closure of Focus DIY - the UK's fourth largest DIY operator with around 180 stores - in the second quarter.
Screwfix sales were boosted by continued initiatives which helped to drive market share gains, the company said.
In the quarter, total sales in France, from Castorama and Brico Dépôt, advanced 6.1 percent to 1.19 billion pounds as it continued to outperform the market with self-help initiatives. Like-for-like sales increased 1.9 percent .
Castorama total sales grew 2.6 percent, supported by continued progress with the store modernization programme, new range introductions and the innovative 'Do-it-Smart' marketing campaign aimed at making home improvement projects easier for customers.
Brico Dépôt, which more specifically targets the trade professional and heavy DIYers, delivered total sales growth of 3.2 percent.
Sales from other international regions increased 8.1 percent, and LFL growth was 3.8 percent with improved performance in Poland, Russia, and Spain, while China's sales declined reflecting fewer stores and a challenging housing market.
Group retail profit climbed 13.9 percent to 273 million pounds, driven by higher sales and continued margin and cost initiatives. Profit from France climbed 18.8 percent and UK profit surged 21.7 percent from last year, partly offset by a 1.5 percent drop in other international region.
For the 39 weeks ended October 29, total group sales rose 4.1 percent to 8.48 billion pounds. Constant currency growth was 3.1 percent and like-for-like sales growth was 1.5 percent.
Looking ahead, Cheshire said, 'the short-term outlook in our major markets remains challenging but Kingfisher is in good shape, and we are more able to drive market share gains, profit growth and higher cash returns.'
Kingfisher shares closed Wednesday's trading at 255.60 pence, up 5.50 pence or 2.20 percent in London.
Copyright RTT News/dpa-AFX
