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Thursday, 21st August 2008

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Kingfisher rises after sales update



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A BETTER-than-expected sales performance at DIY chain B&Q caused shares in retail business Kingfisher to jump by more than 10 per cent today.
The FTSE 100 Index group said B&Q's UK arm was trading "solidly" after like-for-like sales rose 0.2 per cent in the 10 weeks to July 12, compared with the 8.1 per cent first quarter decline reported in early June.

Kingfisher said sales of B&Q's se
asonal ranges were up by a fifth as figures benefited from comparison with last year's weather-hit summer.

It described the UK market as tough but said total sales were up by 5.1 per cent overall after opening 13 trade counters at its Screwfix building supplies business. The period also saw margin and cost improvement, it added.

Kingfisher is Europe's leading home improvement retail group and the third largest in the world, with nearly 850 stores in nine countries in Europe and Asia. Its other brands are Castorama and Brico Depot, while it also has a 21 per cent stake in Hornbach, a German DIY retailer.

Total group sales were up 4.4 per cent, but down 1.5 per cent on a like-for-like basis after a weak housing market hit Brico Depot in France and trading remained difficult in China, where work is under way to improve the performance.

Recently-appointed chief executive Ian Cheshire, who is trying to halt three years of successive profit falls for Kingfisher, said: "We have achieved sales growth and taken action to improve gross margins and manage costs in all our major markets.

"As anticipated the UK market remains extremely tough, but we are trading solidly."

Mr Cheshire is leading a store revamp at B&Q, including updated product ranges, better layouts and improved customer service.

B&Q is roughly halfway through a store refurbishment programme, which is devoting more space to showroom displays of complete kitchens and bathrooms as it seeks to move away from aisle-based layouts.

Evidence earlier this year showed the revamped stores were delivering 13 per cent higher sales on average than the older-format sites.





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  • Last Updated: 24 July 2008 8:59 AM
  • Source: n/a
  • Location: Yorkshire
 
 
  

 
 


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