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28/04/2005
Kingfisher warns of potential drop in profit
Kingfisher, the owner of the B&Q home improvement chain, has announced that they are expecting reported retail profit for the first quarter to drop by 15%.
Kingfisher also said that it expected like-for-like sales to decline by around 6% in the first quarter.
However, the company also announced plans to expand into the Chinese market, with the acquisition of another home-improvement chain.
The company released a trading update, ahead of its formal quarterly results announcement, due on May 26, which said that trading had continued to be “weak” since the preliminary results announcement on March 17.
Kingfisher said it expected to announce “broadly flat” total sales for the quarter, with declining sales at B&Q UK and Castorama stores in France offset by continued growth at Brico Depot in France.
Kingfisher said that a number if factors, including higher taxes, debt costs and inflation had impacted on consumer spending, resulting in a “very tough” trading environment for UK retailers.
Poor spring weather and an early Easter had also presented “additional challenges” to the company’s UK and French businesses, Kingfisher reported, and said that official statistics confirmed that the household goods markets had been “particularly slow” in both countries.
Commenting on the expected results, Kingfisher Chief Executive Gerry Murphy said: “The weakening trends experienced by UK retailers in the last quarter of 2004 seem to have continued into 2005. Whilst it is too early to judge the full year, it is clear that demand is weak in the UK and any sales growth will be hard won in very competitive markets.”
However, Kingfisher said that its other businesses in Europe and Asia were continuing to grow, with the exception of Castorama Poland, which was still affected by higher VAT and strong sales comparison with the previous year.
Kingfisher has also announced plans to Chinese home-improvement chain, OBI Asia Holding. The chain 13 stores in China and a further five are due to open this year. Kingfisher owns B&Q China, which currently operates 22 stores, and expects the addition and conversion of OBI’s stores to “significantly accelerate” B&Q China’s growth to around 50 stores in the next 12 months.
Mr Murphy said: “China is a tremendous opportunity for Kingfisher and this move underlines our commitment to, and belief in, the Chinese market and our own Chinese management team.”
(KMcA/SP)
Kingfisher also said that it expected like-for-like sales to decline by around 6% in the first quarter.
However, the company also announced plans to expand into the Chinese market, with the acquisition of another home-improvement chain.
The company released a trading update, ahead of its formal quarterly results announcement, due on May 26, which said that trading had continued to be “weak” since the preliminary results announcement on March 17.
Kingfisher said it expected to announce “broadly flat” total sales for the quarter, with declining sales at B&Q UK and Castorama stores in France offset by continued growth at Brico Depot in France.
Kingfisher said that a number if factors, including higher taxes, debt costs and inflation had impacted on consumer spending, resulting in a “very tough” trading environment for UK retailers.
Poor spring weather and an early Easter had also presented “additional challenges” to the company’s UK and French businesses, Kingfisher reported, and said that official statistics confirmed that the household goods markets had been “particularly slow” in both countries.
Commenting on the expected results, Kingfisher Chief Executive Gerry Murphy said: “The weakening trends experienced by UK retailers in the last quarter of 2004 seem to have continued into 2005. Whilst it is too early to judge the full year, it is clear that demand is weak in the UK and any sales growth will be hard won in very competitive markets.”
However, Kingfisher said that its other businesses in Europe and Asia were continuing to grow, with the exception of Castorama Poland, which was still affected by higher VAT and strong sales comparison with the previous year.
Kingfisher has also announced plans to Chinese home-improvement chain, OBI Asia Holding. The chain 13 stores in China and a further five are due to open this year. Kingfisher owns B&Q China, which currently operates 22 stores, and expects the addition and conversion of OBI’s stores to “significantly accelerate” B&Q China’s growth to around 50 stores in the next 12 months.
Mr Murphy said: “China is a tremendous opportunity for Kingfisher and this move underlines our commitment to, and belief in, the Chinese market and our own Chinese management team.”
(KMcA/SP)
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18 February 2005
B&Q sales growth falters in tougher conditions
The two-and-a-half year growth in sales at B&Q has finally ended as parent company Kingfisher reported a fall in sales at the UK and Ireland DIY store chain of 1.2% in like-for-like sales in the quarter to January 29, 2005. Kingfisher's French division Castorama turned in a similar sales performance with a fall in sales of 0.9%.
B&Q sales growth falters in tougher conditions
The two-and-a-half year growth in sales at B&Q has finally ended as parent company Kingfisher reported a fall in sales at the UK and Ireland DIY store chain of 1.2% in like-for-like sales in the quarter to January 29, 2005. Kingfisher's French division Castorama turned in a similar sales performance with a fall in sales of 0.9%.
06 September 2005
B&Q to cut 400 jobs
DIY chain B&Q has announced that it is to cut 400 jobs, due to a slowdown in consumer spending. B&Q owner, Kingfisher, announced that 220 jobs are to go at the firm’s Southampton headquarters, while a further 80 regional administration posts will also be axed. Another 100 vacant posts will now not be filled.
B&Q to cut 400 jobs
DIY chain B&Q has announced that it is to cut 400 jobs, due to a slowdown in consumer spending. B&Q owner, Kingfisher, announced that 220 jobs are to go at the firm’s Southampton headquarters, while a further 80 regional administration posts will also be axed. Another 100 vacant posts will now not be filled.
27 August 2001
Kingfisher approve Woolworths chain demerger
Kingfisher investors have approved the demerger of the Woolworths chain stores in the UK. Shares in the retail chain store will begin trading next Tuesday. Former Railtrack boss Gerald Corbett, who joined in March to oversee the demerger, will head the newly separated business. However, despite turnover of around 2.
Kingfisher approve Woolworths chain demerger
Kingfisher investors have approved the demerger of the Woolworths chain stores in the UK. Shares in the retail chain store will begin trading next Tuesday. Former Railtrack boss Gerald Corbett, who joined in March to oversee the demerger, will head the newly separated business. However, despite turnover of around 2.
14 November 2001
B&Q announce plans to expand throughout UK
DIY retail superstore B&Q is to open over 170 new warehouses in a move that could create 4,000 new jobs throughout the UK over the next five years.
B&Q announce plans to expand throughout UK
DIY retail superstore B&Q is to open over 170 new warehouses in a move that could create 4,000 new jobs throughout the UK over the next five years.
28 August 2001
Share surge as trading begins on Woolworths
Shares in UK store chain Woolworths have surged on their first hours of trading, up from an opening price of 25 pence to 31.25 pence.
Share surge as trading begins on Woolworths
Shares in UK store chain Woolworths have surged on their first hours of trading, up from an opening price of 25 pence to 31.25 pence.
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