Home improvement retailer B&Q has reported a decline in sales as overall UK and Ireland revenues rose.
According to the latest Kingfisher, parent company of B&Q, trading update for the six months ended 31 July 2024, total group sales fell 1.8% to £6.7bn from £6.8bn.
Statutory pre-tax profit resulted at £324m, up 2.3% from £317m against the same period last year.
UK & Ireland sales increased 0.9% to £3.3bn, with B&Q revenues down 1.2% to £2bn.
In the UK & Ireland, core category sales remained positive in Q2, and ‘big-ticket’ sales followed a similar trend to Q1. Seasonal LFL sales moved from +3.3% in Q1 to -2.8% in Q2. Repair, maintenance and existing home renovation activity continued to provide support to core category sales, with TradePoint the standout performer (LFL +5.8%) of all the UK & Ireland banners in the quarter.
Commenting on B&Q, the group said: “B&Q total sales decreased by 1.2% (LFL -1.0%) to £2,075m, with positive LFL sales growth in core categories and resilient seasonal sales more than offset by weakness in ‘big-ticket’. Underlying sales trends (i.e., excluding calendar and leap year impacts) in core and ‘big-ticket’ categories were consistent across Q1 and Q2, while sales of seasonal categories slowed (Q2 -2.4% vs Q1 +2.7%).
“Within our core and seasonal categories, we achieved positive LFL sales growth in building & joinery, tools & hardware, surfaces & décor and outdoor, partially offset by weather-related weakness in EPHC (electricals, plumbing, heating & cooling). B&Q’s total e-commerce sales increased by 18.3% YoY, driven by the continued strong performance of B&Q’s marketplace which reached an online sales penetration of 41% in Q2.”
Thierry Garnier, Chief Executive Officer, said: “Trading overall in the first half was in line with our expectations. This was underpinned by customers continuing to repair, maintain and renovate their existing homes, driving resilient volume trends in our core product categories. As expected, demand for ‘big-ticket’ categories has remained weak, in line with the broader market, while seasonal category sales trends have improved since early July. Against this backdrop we maintained a strong focus on effectively managing our costs and inventory.
“Our UK & Ireland banners continued to gain market share, supported by strong e-commerce sales and our progress in addressing trade customer needs. Screwfix delivered positive LFL sales and TradePoint achieved strong LFL sales growth of 7.1%, now representing 22% of B&Q’s sales. Sales in France were broadly in line with the market, reflecting the soft consumer backdrop. Notwithstanding this, we are making rapid progress with our actions to simplify the French organisation and improve the performance and profitability of Castorama France over the medium term. In Poland, we gained market share and our sales trend was supported by an improved consumer environment.
“I am proud of the unwavering focus of our teams in executing against our strategic priorities, with two key highlights. First, our e-commerce sales penetration improved by 1.5 points to 18.3% and B&Q’s e-commerce marketplace reached a 40% share of its online sales. We have also successfully launched Castorama France’s marketplace, with Poland to follow in H2. And second, in trade, we are extending the successes we have seen in the UK to other markets, with trade sales penetration growing strongly in France, Iberia and Poland.
“Reflecting our performance in the first half and our current view of the trading environments in our markets, we have tightened our profit guidance and upgraded our free cash flow guidance for the year. We remain focused on continuing to manage our costs and cash effectively, and driving further market share gains by delivering on our key strategic priorities.
“With positive early signs of a housing market recovery, notably in the UK, Kingfisher is strongly positioned for growth in 2025 and beyond.”
