This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2017/aug/17/b-and-q-kingfisher-sales-uk-barbecues-garden-furniture

The article has changed 7 times. There is an RSS feed of changes available.

Version 3 Version 4
B&Q and Homebase sales hammered by bad weather B&Q and Homebase sales hammered by bad weather
(about 4 hours later)
Summer has been a DIY disaster for the UK’s two biggest home improvement chains, which have reported falling sales as they struggle with wet weather and disruption from major restructuring plans.Summer has been a DIY disaster for the UK’s two biggest home improvement chains, which have reported falling sales as they struggle with wet weather and disruption from major restructuring plans.
Kingfisher, Europe’s largest home improvement retailer, reported a 4.7% fall in sales at its established B&Q stores in the three months to the end of July.Kingfisher, Europe’s largest home improvement retailer, reported a 4.7% fall in sales at its established B&Q stores in the three months to the end of July.
Homebase, which is in the process of transforming into an outpost of the Australian chain Bunnings, said sales at stores open more than a year dropped by 4.3% in the three months to the end of June. Homebase, which is transforming into an outpost of the Australian chain Bunnings, said sales at stores open more than a year dropped by 4.3% in the three months to the end of June.
Total sales fell by 6.8% and underlying sales at established Homebase and Bunnings stores declined by 4.3% as they cut prices and suffered disruption from changing their look and product ranges.Total sales fell by 6.8% and underlying sales at established Homebase and Bunnings stores declined by 4.3% as they cut prices and suffered disruption from changing their look and product ranges.
The chains, which are owned by the retail group Wesfarmers, reported a loss before interest and tax of £54m, after £19m of restructuring costs. Revenue was £1.2bn in the first full financial year after Wesfarmers acquired Homebase for £340m. The chains, owned by the retail group Wesfarmers, reported a loss before interest and tax of £54m, after £19m of restructuring costs. Revenue was £1.2bn in the first full financial year after Wesfarmers acquired Homebase for £340m.
Kingfisher, which also trades as Screwfix in Britain, and Castorama and Brico Dépôt in France and other markets, said it remained cautious on the outlook for the second half as it continues to unify more product ranges across the group and implement new IT systems. Kingfisher, which also trades as Screwfix in Britain, and Castorama and Brico Dépôt in France and other markets, said it remained cautious on the outlook for the second half as it continued to unify more product ranges across the group and implement new IT systems.
The company’s share price fell by 5% as analysts said sales at B&Q in the UK and Ireland were worse than the 3% drop expected. Sales in France, Russia and Spain also declined, but there was strong growth of 17.2% at the UK’s Screwfix business, and a 4% rise in underlying sales in Poland. The company’s shares closed down just over 4%, the biggest faller on the FTSE 100 on Thursday, after analysts said sales at B&Q in the UK and Ireland were worse than the 3% drop expected.
Sales in France, Russia and Spain also declined, but there was strong growth of 17.2% at the UK’s Screwfix business, and a 4% rise in underlying sales in Poland.
B&Q suffered from poor availability on some products, as well as a damper summer than last year, which hit sales of barbecues, garden furniture and other outdoor goods.B&Q suffered from poor availability on some products, as well as a damper summer than last year, which hit sales of barbecues, garden furniture and other outdoor goods.
A warm spring also led shoppers to buy some of these items earlier than usual, hurting sales in the following quarter, with the result that seasonal goods fell by 10.7% compared with a 9.6% rise in the three months to the end of July. A warm spring also led shoppers to buy some of these items earlier than usual, hurting sales in the following quarter, with the result that seasonal goods fell by 10.7% in the three months to the end of July, compared with a 9.6% rise in the same quarter last year.
Kingfisher is in the second year of a plan to increase annual profit by £500m from 2021, which will cost £800m over five years to deliver. It involves unifying product ranges across the business, improving e-commerce capabilities and finding efficiencies.Kingfisher is in the second year of a plan to increase annual profit by £500m from 2021, which will cost £800m over five years to deliver. It involves unifying product ranges across the business, improving e-commerce capabilities and finding efficiencies.
The chief executive, Véronique Laury, said that the disruption was “on an improving trend”. Kingfisher’s chief executive, Véronique Laury, said the disruption was “on an improving trend”.
“Having been very aware that this year would be challenging given the step up in transformation activity, we already have self-help plans in place to support our overall year two performance,” she said.“Having been very aware that this year would be challenging given the step up in transformation activity, we already have self-help plans in place to support our overall year two performance,” she said.
Wesfarmers said its performance in the UK would continue to be negatively affected by disproportionate costs and disruptions associated with store revamps until its Bunnings chain reached scale. Wesfarmers said its performance in the UK would continue to be negatively affected by disproportionate costs and disruptions associated with store revamps until its Bunnings chain was fully up and running.
Between 15 and 20 pilot Bunnings stores are expected to be converted from Homebase shops by the end of December.Between 15 and 20 pilot Bunnings stores are expected to be converted from Homebase shops by the end of December.