Kingfisher reports strong Q4 and expects profits at top end of estimates
Source: Mintel 13-01-2021

UK 13-01-2021

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Kingfisher has reported a rise in sales of 16.9% on a like-for-like basis. While like-for-likes for the financial year to date (February 1 2020 to January 9, 2021) were up 6.5%.

All of the retailer stores remain closed but customers are allowed to collect online orders in store under strict social distancing and safety protocols.

Mintel comment:

“Another quarter of double-figure growth brings Kingfisher nearer to a remarkable 12 months, as the renewed focus on homes have seen the group go from strength-to-strength since total sales slumped by 24.8% on a like-for-like basis in Q1; at the height of the outbreak in the three months to April 2020. The crux of these latest results still surrounds extended periods inside, which continue to push the home, and in particular home improvements, up the agenda for many consumers. This reprioritisation has been buoyed for many by spending redirected from other non-essential sectors such as travel, clothing and entertainment.

This is certainly true of the fourth quarter, when a lockdown during November ensured that much of the population remained housebound. However, the latest results could have been driven, in part, by the shift in these priorities come Christmas time. As discussed in the upcoming Christmas Gift Buying – UK, February 2021 report, 15% of consumers purchased homewares at Christmas this year, up from 13% and 10% in the two years previous. Given the shift in lifestyles since March, this increased demand also likely extended to sectors such as power tools, boosting sales over this period.

Moving forward, the recent trends will continue with the 4 January national lockdown, thereby ensuring continued double-digit growth for the coming quarter. The continued months indoors will add to the longer-lasting implications of this shift, not least in the recovering appetite for Do-It-Yourself, which will continue to open up avenues for growth in 2021. Interestingly, restrictions in-store and the closure of B&Q showrooms, alongside the renewed demand for bigger-ticket renovations should drive the popularity of virtual design services. A service, which, as discussed in the upcoming Consumer Trends, Attitudes and Spending Habits for the Home report, 13% of consumers agree would make them likely to choose one retailer over another when shopping for the home online.”