ANALYST VIEWS: HOW IS KINGFISHER HOLDING UP IN LEAN TIMES?
NICK BUBB | ARDEN PARTNERS
We had hoped to see a small positive, on the view that the weather has been helpful and the World Cup impact overstated. The UK is in fact disappointing, with B&Q like-for-like sales down by 4.3 per cent, albeit gross margins are good. The read-across for Homebase and Home Retail is negative.
JOSEPH ROBINSON | VERDICT RESEARCH
Conditions for B&Q are looking more challenging compared to this time last year, particularly in its showrooms categories, which will be up against tough second half 2009/10 comparatives. Moreover, the business is facing weak consumer confidence and high unemployment.
RICHARD HUNTER | HARGREAVES LANSDOWN
In particular, the UK business remains under pressure, with management guidance understandably cautious for the foreseeable future. The bright spot in the update arrived from France, where the Castorama and Brico Depot chains produced a 2.6 per cent increase in sales. On the whole the market is positively disposed towards the shares due to its geographical diversification, with some sporadic but rapid growth patterns being seen in the likes of China and Poland. The general view is that the shares remain a buy.