Lockdown lift for B&Q profit

WEB SALES UP 200% AMID DIY SURGE

A SURGE in lockdown home improvements has boosted half-year profits at B&Q owner Kingfisher.

The retailer said like-for-like sales rose 21.6 per cent in the three months to July 18, boosted by good weather, cost-cutting, soaring online sales and the phased reopening of stores.

Online sales rose more than 200 per cent in May and June as tackling DIY jobs became popular during lockdown with people who were made to stay at home.

Sales across the UK and Ireland jumped 25.9 per cent last month, while sales leapt 33 per cent in France where Kingfisher trades as Castorama and Brico Depot.

The firm said: “Based on the strong sales seen to date in the second quarter, combined with cost reductions benefiting the first half, the company anticipates its half-year adjusted pre-tax profit to be ahead of prior year.” However, it held off giving guidance on the full year, with group year-to-date samestore sales still down 3.7 per cent.

The company said: “While we are entering the second half with a favourable trading backdrop, second-half visibility remains low given uncertainty around Covid-19 and the wider economic outlook.”

The update comes after Kingfisher saw pre-tax profits fall to £103million for the year ending January 31 – compared to £300million the previous year. This was mainly due to a £441million hit in exceptional costs, although sales fell 1.5 per cent to £11.5billion.

The group is bucking the retail recruitment trend of shedding large numbers of staff due to the pandemic.

It announced last month it would take on up to 4000 workers to meet rising demand, with half of these job in the UK. The roles will be temporary over the summer and will depend on demand.