Growing DIY trend boosts B&Q profits
DIY chain B&Q was hailed the “jewel in the crown” by Kingfisher’s chief executive Ian Cheshire yesterday, as the growing trend of home improvement boosted sales and lifted profits ahead of expectations.
Kingfisher yesterday said pre-tax profits leapt by 35 per cent to £288m in the 26 weeks to 1 August, from £214m the year before.
Kingfisher was forced to rush out an early trading statement last week after draft figures were release by mistake. Prior to that analysts were forecasting profits of just £268m.
Cheshire laughed off the leak, saying “the results are so good, we released them twice.”
The group’s star performer was B&Q, whose profits jumped 66 per cent to £137m, as sales grew by 2.6 per cent. Total group sales grew by 1.4 per cent.
Cheshire said that B&Q had successfully “capitalised on the growing DIY trend”.
“People are beginning to be more interested in their homes as a place to live, rather than just viewing them as a financial asset.”
The group said that it had also increased its market share during the period, stealing shoppers from collapsed rivals such as MFI.
Castorama, the firm’s French business, reported flat sales and profit in a severely tough environment, while the group said it had been able to close 44 loss-making stores in China, in line with expectations.