DIY group Kingfisher has experienced yet another disappoiting quarter: the British-French group suffered setbacks in both its home markets and the restructuring plan is also weighing down its results.
B&Q turnover drop
Kingfisher’s reported turnover grew 4 % to 3.15 billion pounds (3.46 billion euro), but that was entirely because of advantageous exchange rate fluctuations. Excluding those, the company’s turnover would have suffered a 1.7 % turnover drop and a 1.9 % like-for-like turnover drop.
The company’s two major markets, France and the United Kingdom, both suffered slumps: like-for-like UK turnover drops 1 %, mainly because of a weaker performance at B&Q. The chain did not even manage to meet the analysts’ average expectations. In France, the company even experienced a 3.8 % like-for-like turnover drop.
“Having been very aware that this year would be challenging given the step up in transformation activity”, CEO Véronique Laury said. Kingfisher is in the middle of a restructuring plan that should help increase its annual profit by 500 million pounds (550 million euro) starting in 2021. Before that time, the plan will cost 800 million pounds (880 million euro).