Shares in Kingfisher (LON:KGF) have fallen into the red in today’s session even as the company reported a rise in sales for the second quarter of the year on the back of the warm weather spell across the UK. The group, however, posted downbeat performance in France.
As of 08:39 BST, Kingfisher’s share price had given up 3.92 percent to 277.10p. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally higher in today’s session and currently standing 0.23 percent higher at 7,515.36 points.
Kingfisher updates on Q2 performance
Kingfisher announced in a statement today that its total sales had climbed 1.6 percent on a like-for-like basis to £3.26 billion in the quarter ended July 31, helped by improved performance of weather-related categories. The group’s strong performance in the UK, where LFL sales rose 4.2 percent, helped offset a one-percent drop in France where the company saw weaker footfall and impact of transformation-related activity at Castorama.
“In Q2, I’m pleased that we grew our sales after the exceptionally harsh weather conditions in Q1,” the group’s chief executive Véronique Laury commented in the statement, adding that the DIY retailer was on track to deliver its “strategic milestones for the third year in a row” as part of its ongoing transformation plan.
Analysts weigh in on group’s results
“Unusually warm summer lifted sales at Kingfisher in the second quarter, but we still see continued weakness in France that is dragging on the group performance,” said Neil Wilson, chief analyst at Markets.com, as quoted by the BBC, adding that today’s results marked ‘a welcome return to like-for-like growth’ after the “Beast from the East took a nasty chunk” out of the group’s first-quarter sales.