Partner Article

Kingfisher profits down after bad weather

Home improvement retailer Kingfisher has estimated it lost out on more than £30m of profit as a result of bad weather.

The owner of B&Q and Screwfix saw its pre-tax profits down, at £371m from £439m last year.

The retailer said “record wet weather” in the UK and northern Europe had led to a significant loss of footfall, while losses made on exchange rates and the cost of introducing a new set of own brands were also contributing factors.

Translating overseas profits from zloty into sterling for reporting purposes cost £25m and the company spent £10m on rolling out its new own brands.

Kingfisher said its “self-help initiatives”, including a drive to make sourcing more efficient, had helped reduce the downturn in profits.

Chief executive Ian Cheshire described the first half of the year as “tough” and said the weather had been “unprecedented”. He said: “This affected footfall and demand for outdoor maintenance, gardening and leisure products, which normally account for a significant proportion of our first half sales.

“However, we took action to clear excess seasonal stocks, drive indoor product sales and tightly manage cash, as well as accelerating our self-help initiatives.

“In the short term we will continue to focus on trading effectively, whatever the market conditions, whilst accelerating our self-help initiatives where practical and remaining agile in order to capitalise on opportunities as they arise.”

This was posted in Bdaily's Members' News section by Robert Cooper .