B& Q owner starts second half of year ‘ with a bang’ despite virus

THE OWNER of B& Q has started the second half of the year “with a bang”, analysts said, as Kingfisher reported only a small hit from the Covid- 19 pandemic.

Sales fell 1.3 per cent in the first six months of the year, but pre- tax profit rose 62 per cent to £ 398m.

Most of the revenue hit came in the first quarter of the year and the business has recovered well since then, even reaching double digit growth in the third quarter.

“Trading into the second half has started with a bang, with Kingfisher noting that the ‘ growth across all banners and categories’ has led to third quarter to date group like- for- like up 16.6 per cent,” said analyst James Grzinic at Jefferies.

“Kingfisher’s first half results present an upbeat picture in the face of a Covid impacted world, with strong second quarter sales gain and Government support more than outweighing first quarter closures and Covid costs.”

Kingfisher’s chief executive Thierry Garnier said that people had rediscovered their homes during the Covid- 19 lockdown.

“It is creating new home improvement needs, as people seek new ways to use space or adjust to working from home.”

Yet, facing uncertainty from the pandemic, Kingfisher suspended the dividend despite a strong showing.

The improvement was largely helped by a huge increase in online sales, which increased by 19 per cent, Online now makes up 19 per cent of all of Kingfisher’s sales, up from seven per cent just a year ago.

Mr Garnier said: “Customers are becoming more comfortable with ordering online. And delivering value to consumers is imperative against a challenging economic backdrop.

“Looking forward, while the near term outlook is uncertain, the longer term opportunity for Kingfisher is significant.

“There is a lot more to do, but the new team and new plan is now established in the business and we are committed to returning Kingfisher to growth.”

Georgina Sreeves, retail analyst at GlobalData, said: “With no end to the uncertainty caused by the pandemic in sight, Kingfisher is wise to focus on digital amid the sizeable shift to online retail.”