Kingfisher boosts outlook despite weak market conditions

(Sharecast News) - B&Q-owner Kingfisher upgraded its full-year outlook on Tuesday, despite market conditions softening in the UK and Poland during the third quarter. Updating on trading, the FTSE 250 retailer - which also owns Screwfix, Castorama and Brico Depot, among others - said underlying sales rose 0.9% in the three months to 31 October, to £3.3bn.

In the UK, sales were 3% higher at £1.7bn. International sales outside of France and Poland were also stronger, with like-for-like growth of 10.3%, to £112m. However, sales fell 2.5% to £974m in France and by 1.3% to £481m in Poland.

Uncertainty around the Budget and a softening labour market continued to weigh on the UK market, Kingfisher noted, while in Poland, the home improvement market was weaker-than-expected despite "signs" of a broader recovery.

However, looking to the full-year and the group boosted profit guidance, to between £540m to £570m, from £480m to £540m.

It said: "Our performance to date, progress in strategic initiatives and our cost and margin discipline, despite softening market conditions in the UK and Poland in the third quarter, gives us the confidence to upgrade our adjusted pre-tax profit guidance."

Thierry Garnier, chief executive, added: "We delivered another quarter of high quality, volume-led growth, driven by our group strategic initiatives in e-commerce and trade and by our performance in core and big-ticket categories.

"B&Q, Screwfix and Iberia continue to strongly outperform their markets."