Trouble for UK DIY giant as ‘late start’ to spring slows sales

B&Q owner Kingfisher has reported a dip in sales over recent months as the delayed onset of spring weather held back spending and bigger purchases remained subdued.

The DIY giant, which also owns Screwfix, said total sales declined by 0.9 per cent to £3.3 billion between February and April, compared like-for-like with the same period last year.

The business said it was “mindful of the consumer environment” but hailed a “resilient” start to the year.

The homeware giant revealed plans to cut more than 650 jobs across the UK last year, a move the company insists the move is about “simplifying” how its shops are run.

The company has stores in Oxford, Abingdon, Witney and Banbury.

In the UK and Ireland, sales at B&Q fell by 4.1 per cent, which the company said reflected a late start to spring resulting in fewer visitors to stores and affecting spending on some of its core items.

“Big-ticket” spending, meaning more costly home purchases, was dragged down by fewer bathroom sales, but the firm said this was partly offset by strengthening new kitchen ranges.

Nevertheless, the Screwfix brand continued to strengthen with sales jumping by 4.1 per cent year on year.

Kingfisher chief executive Thierry Garnier said it was a “resilient start to the year” for the retailer while remaining “mindful of the consumer environment”.

READ MORE: Oxford crowned UK’s literary capital by Time Out magazine

The brand has been taking a bigger share of the market and has been impacted by online and trade initiatives.

The retail group is expecting earnings to grow this year, saying it is on track to make adjusted profits of between £565 million and £625 million for the current financial year.

“E-commerce and trade sales both delivered double-digit growth, underlining the momentum in our key growth drivers,” Mr Garnier said.

“While mindful of the consumer environment, we remain absolutely focused on delivering our strategy, disciplined gross margin and cost management, and consistent shareholder returns.”

However, Russ Mould, investment director at AJ Bell, said: “Blaming the weather for weak trading is often seen in the ‘dog ate my homework’ category of excuses by the market, but the fact it has not forced any downgrades means Kingfisher has kept investors on side.

“Among the areas of positivity is the continued strong growth in the Screwfix business. Kingfisher, like several of its peers, is pursuing trade customers who are often more reliable and consistent sources of revenue than ordinary consumers.

“That’s because materials and tools are not a nice-to-have for them but essential to their day job.”