Kingfisher posts profits rise despite fall in UK sales

b%26q.gifKingfisher, Europe’s largest home-improvement retailer, has reported an 8.9% increase in retail profit to £96m, in the three months to May 3. The rise has been largely attributed to cost cutting measures and a decrease in its number of promotions.

However, sales were weak in the UK, falling 5.8% to £997m in its B&Q stores, a reflection of the bad spring weather which impacted on sales of outdoor products, which fell almost 40%.

In the company’s trading update it states that profit recovery in the UK will be the largest single driver for improving shareholder value. It is rolling out of new products, focusing on improving both service and B&Q store environments. Among other planned changes, it is also working on revamping around 20 of its larger stores in 2008/09.

Group chief executive Ian Cheshire says trading remained tough, as inticipated, particularly in the UK.

“The poor weather was unhelpful for sales of outdoor products. Sales of indoor products, including higher ticket, project related categories, held up well despite the unfavourable consumer backdrop. Against this backdrop, we have taken vigorous action to improve margins and control costs,” he says.

Latest from Marketing Week

Marketoonist on being agile

Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here