DIY retailer Kingfisher has reduced its profit guidance by £10 million as a result of rising wages and energy costs.
The retailer, which owns B&Q and Screwfix in the UK, predicted a full-year adjusted pre-tax profit of £730 million to £760 million.
It came as the company reported an increase in sales for the three months ending October 31.
On a constant currency basis, total group sales increased by 1.7 percent to £3.26 billion, while like-for-likes increased by 0.2 percent.
Like-for-likes were 15.3 percent higher than before the pandemic.
Total sales in the United Kingdom and Ireland increased 0.1 percent year on year in constant currency, but like-for-likes fell 2.3 percent.
Total sales at B&Q fell 2.7 percent during the quarter, while like-for-likes fell 3.5 percent. Screwfix increased total sales by 4.9 percent, but like-for-likes fell by 0.5 percent.
During the period, Kingfisher’s UK and Ireland division was the only one to experience a like-for-like decline.
Despite the cost-of-living crisis, the group said it is seeing resilience in outdoor and “big-ticket” category sales trends.
It also stated that it had effectively managed rising inflation as well as supply chain pressures and that it had returned to pre-pandemic levels of in-store product offerings after the supply chain had previously left holes on its shelves.
Kingfisher chief executive Thierry Garnier said: “Our sales trends continued to be resilient, with like-for-like sales 15.3 percent ahead of pre-pandemic levels in the quarter,”
“This was supported by continued market share growth, including strong gains at Screwfix, TradePoint and Castorama Poland.
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“While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency.
DIFM and trade activity are also well supported by strong pipelines for home improvement work.
“Competitive pricing remains a priority. With our customers facing rising living costs, we are determined to make home improvement affordable and accessible – particularly through our own exclusive brands which represent 45 percent of our sales.
“While we continue to be vigilant against macroeconomic uncertainty, we remain confident in both the resilience of our industry and in continuing to grow ahead of our markets.”
Source: Retail Gazette