B&Q owner Kingfisher has hiked its annual profit outlook despite flagging half-year sales in the DIY chain as Britons held off from splashing out on bigger purchases.
The group said B&Q like-for-like sales in the UK and Ireland dropped 1.8% over its second quarter, with sales of so-called big ticket items plunging 8.1%, driven largely by lower demand for bathroom ranges.
But the decline marked an improvement on the 4.1% fall seen in the first quarter across B&Q, as heatwaves sparked a recovery in demand for seasonal items.
Its Screwfix business also continued to see strong sales, with a 7.1% jump in the second quarter, helping overall UK and Ireland same store sales rise 1.6% in the second quarter and 0.4% over the first half.
Kingfisher – which also has a number of home improvement brands across Europe, such as Brico Depot and Castorama – reported a 9.9% rise in underlying pre-profits to £404 million for the six months to July 31, though this was boosted by a one-off £14 million UK business rates refund.
On a statutory basis, pre-tax profits jumped 18.4% to £400 million.
The group increased its guidance for full-year underlying pre-tax profit guidance to between £595 million and £635 million, up from the £565 million to £625 million previously pencilled in.
Outgoing chief executive Thierry Garnier said: “While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”
Mr Garnier announced plans in May to step down after nearly seven years to head up Netherlands-headquartered supermarket group Ahold Delhaize, but is remaining in place during the hunt for his successor.
This article was written by Holly Williams from The Evening Standard and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.