Why the owner of B&Q expects growth in profits

The retailer said group like-for-like sales rose 21.6 per cent in its second quarter so far to July 18, boosted by cost-cutting as well as soaring online trading and the phased reopening of stores in France and the UK since mid-April.

Group online sales rocketed more than 200 per cent in May and June amid the trend for home improvements as lockdowns across Europe forced households to stay at home.

Kingfisher said like-for-like sales across the UK and Ireland - where it also owns Screwfix - jumped 25.9 per cent last month, while sales leapt 33 per cent in France, where it trades as Castorama and Brico Depot.

Sales have continued to remain strong in July, with UK and Ireland like-for-like growth of 19.6 per cent in the week to July 18 and group online growth of 183.3 per cent.

Kingfisher 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."

But it held off from giving guidance on the full-year out-turn, with group year-to-date same-store sales still showing the impact of the lockdown, down 3.7 per cent.

It added: "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 £103m for the year ending January 31, compared with £300m the previous year, mainly due to a £441m hit in exceptional costs, though sales fell 1.5 per cent to £11.5bn.