Kingfisher, the U.K.-based home improvement giant, posted retail sales of 3.9 billion English pounds (US$7 billion) for the second quarter ended July 31, an 11.6 percent increase. Same-store sales increased 6.1 percent during the quarter.
Retail profit for the quarter increased more than 13 percent to 355.8 million pounds (US$638.1 million) compared to a profit of 314.4 million pounds (US$563.7 million) during the same period last year. Pre-tax profits increased 27 percent to 346.3 million pounds (US$621 million) in comparison to pre-tax profits of 272.5 million pounds during the second quarter of 2003.
In the United Kingdom and Ireland, total sales increased 6.3 percent while profits increased 10.2 percent. B&Q sales saw sales grow 5.9 percent as profits increased nearly 13 percent to 207.8 million pounds thanks to strong performances in kitchens, bathrooms and electricals. During the quarter, Kingfisher converted 44 stores to its B&Q mini-warehouse format.
Kingfisher's operations in France and the rest of the world grew by nearly 20 percent as profits grew more than 23 percent. Sales in France at Castorama and Brico Depot stores were up 7.8 percent and 26.6 percent as profits rose 12.7 percent to 68.3 million pounds and nearly 13 percent to 36 million pounds. While Castorama revamped seven stores and relocated two others, sales at Brico Depot received a boost from a new catalog launch in April.
In the second quarter, Kingfisher announced it would enter Russia. And for good reason, given its other European markets, including Poland, are demonstrating strong performances. Kingfisher said its rollout in Russia will be based on its Polish format. Sales were up 48.2 percent as profits grew 64.2 percent to 37.6 million pounds at Kingfisher's non-U.K. and non-French stores.
"Kingfisher made good progress in the first half with double digit sales and profit growth. In the UK, B&Q's non-seasonal ranges sold well, offsetting a weaker performance in a difficult seasonal market. In France, Castorama's revitalization continued and Brico Depot's new catalog took the market by storm," said Gerry Murphy, Kingfisher chief executive. "Kingfisher's other European and Asian businesses all made good progress. Over 60 percent of Kingfisher's sales growth in the first half came from outside the UK."
"Our home improvement markets are dynamic and competitive," Murphy added. "To sustain our growth and improve returns for our shareholders, we continue to develop our stores and infrastructure and to work with our suppliers to deliver more choice and better value to our customers."
Kingfisher plc is Europe's leading home improvement retailer and the third largest in the world behind Home Depot and Lowe's. The company operates 579 stores in nine countries in Europe and Asia. Kingfisher also has a strategic alliance with Hornbach, Germany's leading DIY warehouse retailer, with more than 110 stores in Germany and seven other European countries.
