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| B&Q sales slump chops Kingfisher profits by 11% | B&Q sales slump chops Kingfisher profits by 11% |
| (about 3 hours later) | |
| B&Q suffered a sales slump last year as a dreary summer dragged down full-year profits at the DIY chain's owner, Kingfisher, by 11%. | B&Q suffered a sales slump last year as a dreary summer dragged down full-year profits at the DIY chain's owner, Kingfisher, by 11%. |
| Kingfisher's chief executive, Ian Cheshire, also gave a downbeat prediction for the Easter weekend, a key period for do-it-yourself and outdoor retailers. Cheshire said the upcoming weekend was "not looking like a chirpy outdoor piece" but said trading could still even out over the season as a whole. | Kingfisher's chief executive, Ian Cheshire, also gave a downbeat prediction for the Easter weekend, a key period for do-it-yourself and outdoor retailers. Cheshire said the upcoming weekend was "not looking like a chirpy outdoor piece" but said trading could still even out over the season as a whole. |
| He added: "If you look at it in terms of a glass half full, last year we had the worst summer in 100 years; this is only the worst March in 50 years." | He added: "If you look at it in terms of a glass half full, last year we had the worst summer in 100 years; this is only the worst March in 50 years." |
| B&Q is particularly sensitive to the weather, Cheshire said, noting that sales of greenhouses slumped 28% last year but lawnmower sales were up 13% because the grass grew so much. | B&Q is particularly sensitive to the weather, Cheshire said, noting that sales of greenhouses slumped 28% last year but lawnmower sales were up 13% because the grass grew so much. |
| Overall B&Q saw like-for-like sales slump by 5.6% in the year to 31 January. The company has cut retail space at one of its stores by 50% and is looking to do the same at other stores, with a desire to cut floor space across its 361 outlets by 20%. Cheshire said this would not involve shedding staff and B&Q hoped to achieve the same amount of sales in smaller shops. | Overall B&Q saw like-for-like sales slump by 5.6% in the year to 31 January. The company has cut retail space at one of its stores by 50% and is looking to do the same at other stores, with a desire to cut floor space across its 361 outlets by 20%. Cheshire said this would not involve shedding staff and B&Q hoped to achieve the same amount of sales in smaller shops. |
| Kingfisher was also hit by weak consumer confidence in its three key markets of the UK, France – where it owns Castorama – and Poland. Cheshire said there were signs of "gentle progress" in the UK this year, with better employment figures and a boost to the housing market from the budget. He said that would likely only result in flat markets, rather than negative ones. | |
| In Poland he expects a return of confidence, but in France he said the situation was unclear as it "depends a lot on what the government can do to reassure consumers we are on an even keel". | In Poland he expects a return of confidence, but in France he said the situation was unclear as it "depends a lot on what the government can do to reassure consumers we are on an even keel". |
| That said, with the weather over the critical upcoming Easter period looking distinctly gloomy, 2013 looks like it will be another bleak year for the DIY sector. | That said, with the weather over the critical upcoming Easter period looking distinctly gloomy, 2013 looks like it will be another bleak year for the DIY sector. |
| Overall profits before tax at Kingfisher fell 13% to £691m for the full year, including the impact of translating figures from euros and zloty into pounds. Like-for-like sales dropped 2.9% and overall revenue was down 2.4% at £10.6bn. | Overall profits before tax at Kingfisher fell 13% to £691m for the full year, including the impact of translating figures from euros and zloty into pounds. Like-for-like sales dropped 2.9% and overall revenue was down 2.4% at £10.6bn. |
| Kingfisher increased the full-year dividend by 7% to 9.46p. The company is hoping to return cash to shareholders via a share buyback but Cheshire said it is not in a position to do so now. "By the time we get to September, if the situation has changed we will update that." | Kingfisher increased the full-year dividend by 7% to 9.46p. The company is hoping to return cash to shareholders via a share buyback but Cheshire said it is not in a position to do so now. "By the time we get to September, if the situation has changed we will update that." |