B&Q owner Kingfisher’s shares dive on European store closures
Shares in B&Q owner Kingfisher plunged this morning after the DIY retailer warned that sales were expected to take a hit as stores closed across Europe due to the outbreak of coronavirus.
The firm’s share price dropped more than 19 per cent after it was forced to shutter 221 of its Castorama and Brico Depot stores across France until at least 14 April.
It has also closed 28 stores in Spain until 29 March after a two-week state of emergency was announced in the country.
The company’s 1,100 stores across the UK, Ireland, Poland, Romania, Portugal and Russia are still open, however as the virus continues to spread across Europe there could be more site closures.
Kingfisher said there is “significant uncertainty on sales and demand as the outbreak spreads, and as central governments and businesses take action to contain and delay its impact.”
Thierry Garnier, chief executive of Kingfisher said: “We are committed to supporting local authorities and governments to limit the spread of the virus, and the health and safety of our colleagues and customers remains our top priority.
“Our teams are also evaluating the best ways to satisfy emergency needs in our markets, particularly for electricity, heating and plumbing.
“While significant uncertainty exists around the impact of Covid-19, we are taking immediate and significant measures to contain our costs and protect our financial position. We have a strong balance sheet, with significant liquidity headroom and limited financial debt.”
Kingfisher said 25 per cent of its goods are sourced in Asia, and that more than 95 per cent of its suppliers’ factories in China have reopened with capacity starting to rebuild.
Factories in Italy are still open but the company said “uncertainty remains over how goods can be transported from the region”.