B&Q owner says sales slow as ‘late start’ to spring holds back shoppers

Russ Mould, investment director at AJ Bell, said: “The market has reacted with considerable relief to the latest update from B&Q-owner Kingfisher as it sticks with full-year guidance, suggesting demand is proving resilient despite a tricky environment.

“Blaming the weather for weak trading is often seen in the ‘dog ate my homework’ category of excuses by the market, but the fact it has not forced any downgrades means Kingfisher has kept investors on side.

“Like-for-like sales did slide in its first quarter to reflect the soggy and chilly start to spring, but there were some bright spots alongside the clouds in the trading statement.

“Among the areas of positivity is the continued strong growth in the Screwfix business. Kingfisher, like several of its peers, is pursuing trade customers who are often more reliable and consistent sources of revenue than ordinary consumers. That’s because materials and tools are not a nice-to-have for them but essential to their day job.

“This strategy is paying off in spades as the company makes market share gains. These sales could become increasingly important as pressures on consumer spending build, although as well as putting people off DIY projects, the do-it-for-me work on which its trade buyers rely may also suffer against a difficult backdrop.”