Kingfisher Q1 Sales Rise, Says Confident Of FY25 View; But Stock Down

(RTTNews) - Home improvement retailer Kingfisher Plc reported Wednesday higher sales in its first quarter, benefited by improved results in UK & Ireland. Meanwhile, sales in France and Poland declined, and the company maintained its fiscal 2025 outlook. On the London Stock Exchange, Kingfisher shares were losing around 3.5 percent to trade at 285.55 pence. Thierry Garnier, Chief Executive Officer, said, "We have made a good start to the year with underlying sales growth of 3.1%, market share gains in all key regions and further progress in our strategic priorities.... It is still early in the year and consumer sentiment remains mixed across our markets. We are focused on executing our strategic growth priorities, maintaining discipline on margin and costs, and driving shareholder returns. We are confident in delivering our full year guidance." Looking ahead, for fiscal 2025, the company continues to expect adjusted profit before tax of approximately 480 million pounds to 540 million pounds. In the first quarter, sales grew 1.6 percent from last year to 3.31 billion pounds. At constant currency rates, sales grew 2.2 percent, and the increase was 1.8 percent on a like-for-like or LFL basis. Underlying total sales growth was 3.1 percent. The company noted that volume and transaction growth was driven by seasonal categories, which had a positive mix impact on average selling price. Retail price inflation was flat. In the quarter, e-commerce sales increased 9.3 percent. UK & Ireland sales increased 6.1 percent to 1.73 billion pounds, while sales from France fell 4.9 percent to 976 million pounds. UK banners performed particularly well, driven by strong seasonal sales and growth in trade and e-commerce.

France delivered sequential improvement, outperforming challenging market conditions, while Poland, as expected, experienced short-term volatility due to geopolitical factors, the company noted.