European home improvement retailer Kingfisher reported a 0.7% fall in first quarter underlying sales against a "soft market backdrop" but kept its profit guidance for full-year profit.
The FTSE-100 listed group, which owns Screwfix in the UK and Ireland, as well Castorama and Brico Depot in France and other markets, said core categories proved resilient despite a late start to spring impacting footfall and seasonal demand.
While overall group sales in the UK and Ireland were down 0.9%, Screwfix had another strong performance with sales up 4.1% and it won market share in the period.
Shares in Kingfisher were up 4.5% in early trading, paring losses over the last three months to 16.3%.
Update reassuring, say analysts
Analysts at RBC Europe said the update was reassuring given a later start to spring this year. They noted that Kingfisher's direct exposure to the Middle East is very low.
While Screwfixes performance was positive, B&Q's sales on the same basis fell 4.1%, reflecting its higher exposure to seasonal items such as garden furniture and plants, and a tough comparative number with last year.
Official data, published last week, showed British retail sales fell by the most in nearly a year in April as fuel sales plummeted, adding to signs of waning consumer spending against the backdrop of the Iran war and rising energy costs.
In France, Kingfisher's like-for-like sales fell 2.1% in the first quarter. They were down 0.2% in Poland.
Profit guidance maintained
The group said it was sticking with its full-year forecast for adjusted pretax profit in a range of £565 million to £625 million versus the £560 million made in 2025/26.
Prior to the update, analysts were on average forecasting £589 million.
"We delivered a resilient start to the year, executing well and gaining market share against a soft market backdrop," CEO Thierry Garnier said, highlighting double-digit growth in e-commerce and trade sales.
Earlier this month Garnier resigned after nearly seven years as CEO to become the boss of Netherlands-headquartered supermarket group Ahold Delhaize. He does, however, have a 12-month notice period.
