Kingfisher UK sales drop 1.9% in Q4
Published: 17 February, 2012
LONDON: Kingfisher is on course to meet its full-year profits targets despite today reporting further falls in UK trading during its fourth quarter.
Sales in the UK and Ireland for the owner of retailers B&Q and Screwfix grew 1.5% during the 13 weeks to 28 January due to new space acquired from failed rival Focus DIY, however on a like-for-like basis domestic trading dropped 1.9% compared to the same period last year.
B&Q like-for-like sales were down 2.5% during the quarter and Screwfix saw a decline of 2.2% over the three months, as cash-strapped consumers continued to limit their spending on non-essential items.
New store openings and the launch of several new product ranges boosted sales at the group's Castorama chain in France, Poland, and Russia, and once the Q4 performance of the group's international operations are included, total sales for Kingfisher rose 0.9% like-for-like in constant currencies.
Full-year profits are now expected to be up 20% on last year, with final results to be announced March, which is in-line with previous estimates.
Kingfisher also announced a management reshuffle today that will see Euan Sutherland, currently chief executive of Kingfisher UK and Ireland, become chief operating officer for the whole of the group with responsibility for the common range initiative and the group's eco business.
Ian Cheshire, chief executive, said: "We have ended another challenging year in robust shape. Looking ahead, the global economic outlook is uncertain and so we will remain focused on self-help measures to trade the business effectively, whatever the market conditions.
- Chief executive, Ian Cheshire's long-term bonus plan puts him in line for a bumper windfall worth as much as £7.8m. Kingfisher has beaten targets set in 2008 under its four-year "delivering value" programme. This will see Mr Cheshire receive shares under two schemes collectively worth £6.14m at today's prices. He is also in line for an annual bonus of as much as £1.63m - double his basic salary - after Kingfisher said in a fourth-quarter trading statement yesterday that it is heading for a full-year profit of about £800m.