Kingfisher to post slump in B&Q sales

B&Q is expected to report a slump in sales next week as a slowing housing market drags on its UK performance.

The DIY chain is tipped by analysts at Jefferies to register a 4% slide in like-for-like sales in the second quarter when its parent firm, Kingfisher, posts figures on Thursday.

Jefferies pointed to a “softer housing market” contributing to its forecast, which follows a number of surveys showing that Britain’s residential property market has cooled considerably since the Brexit vote last year.

George Salmon, equity analyst at Hargreaves Lansdown, also highlighted softening seasonal sales, which had helped its performance in the first quarter.

He added: “The worry heading into the second quarter update is the seasonal boost doesn’t appear again, and a slower housing market drags UK sales down.”

Kingfisher has also faced a stalling housing recovery in France, where the group trades as Castorama and Brico Depot.

However, one bright spot is again expected to be Screwfix, where like-for-like sales are set to increase 10%.

The trade-focused chain has been the stand-out performer for Kingfisher of late, regularly clocking up double-digit sales increases.

Followers of the group will be looking to see if Screwfix in the UK is still performing well.

The slowing housing market is dragging on B&Q UK performance.