Kingfisher’s sales climb by 21.8% as Europe starts to ease Coronavirus restrictions

Kingfisher’s sales climb by 21.8% as Europe starts to ease Coronavirus restrictions
Written by:
Wajeeh Khan
June 17, 2020
  • Kingfisher’s sales climb by 21.8% as Europe starts to ease Coronavirus restrictions.
  • The UK company prints a 5.2% decline in its adjusted full-year pre-tax profit.
  • The home improvement retailer boasts £3.0 billion in cash as of 12th June.

Kingfisher (LON: KGF) revealed higher sales on Wednesday as its stores reopened in Europe after COVID-19 restrictions that were imposed in recent months to minimise the fast spread of the novel flu-like virus. The company also expressed confidence that it will remain more resilient than most businesses in the United Kingdom through the Coronavirus driven recession.

The home improvement group said that its underlying sales came in 21.8% higher in the second quarter to date (13th June). Shares of the company were reported 5.5% up in premarket trading on Wednesday. At 215 pence per share, the owner of Screwfix and B&Q is roughly 2.5% down year to date in the stock market after recovering from a low of 124 pence per share in March. Learn more about how to invest in the stock market.   

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Kingfisher to hire 3,000 to 4,000 new staff members

The retailer also said on Wednesday that its comparable-store sales were down by 75% in the 1st week of April. Since the 2nd week of May, however, its same-store sales are now 25% higher.

CEO Thierry Garnier of Kingfisher attributed the increase in sales to COVID-19 that has restricted people to their homes and fuelled an interest in DIY (do it yourself) projects. The British multinational temporarily shut down all of its stores in the UK and France in mid-March. It started to reopen its retail stores for the public in the third week of April. Kingfisher welcomed shoppers back to its Redditch shopping centre on 15th June. E-commerce sales, Kingfisher added, have quadrupled since mid-March.

Kingfisher expressed plans of hiring 3,000 to 4,000 new staff members to meet the rising demand. Citing the rising COVID-19 uncertainty, the retailer refrained from providing financial guidance for 2020-21.

Kingfisher boasts £3.0 billion in cash

After minimising costs to shore up finances in recent months, Kingfisher now has £3.0 billion in cash. The company also suspended its final dividend earlier this year in March.

At £544 million, London-headquartered company printed a 5.2% decline in its adjusted pre-tax profit in the financial year that ended on 31st January. Its sales in the recently ended fiscal year came in 1.5% lower at £11.5 billion. In terms of statutory pre-tax profit, Kingfisher reported a broader 65.7% decline to £103 million.

Kingfisher performed slightly upbeat in 2019 with an annual increase of 3% in the stock market. At the time of writing, the 4.53 billion company has a price to earnings ratio of 28.71.