B&Q owner Kingfisher reported a fall in first-half profits against a tough comparator last year when DIY boomed during pandemic lockdowns and now amid a “more uncertain macroeconomic environment”.
The company on Tuesday said pre-tax profits for the six months to July 31 fell by a third to £474m, while like-for-like sales were down 4.1% to £6.8bn. Kingfisher, which also owns Brico Depot in France, said it now expected full-year adjusted pre-tax profit of £730m – £770m.
“Looking to the months ahead, although trading in the year to date has been in line with our expectations, we remain vigilant against the more uncertain economic outlook for the second half. We are therefore focused on delivering value to our customers at a time when they need it most,” said chief executive Thierry Garnier.
DIY sales soared during Covid lockdowns as people spending more time at home took the opportunity to complete DIY projects. Now consumers are facing soaring energy prices and runaway inflation, meaning they have reined in discretionary spending.
Reporting by Frank Prenesti at Sharecast.com
