B&Q caution on outlook despite April BBQ boost

DIY chain B&Q yesterday unveiled a 10 per cent boost to profits after April's warm weather and run of bank holidays inspired customers to focus on garden projects and barbecues.

Kingfisher, which owns the retail giant, said the seasonal boost meant sales of garden furniture and outdoor paints were especially good, though this had a knock-on affect on sales of indoor products, which fell by 10 per cent.

Overall, B&Q, which has 330 stores in the UK and Ireland, increased sales by 1.5 per cent to 1.1 billion in the three months to 30 April, in line with City forecasts. Profits over the quarter rose by 10.1 per cent to 74 million

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Ian Cheshire, Kingfisher's chief executive, added a note of caution to the strong numbers, saying the early spring may have brought forward some outdoor sales and he expects the rest of the year to be tough for retailers generally, especially in the UK.

Cheshire said: "Whilst we have got off to a good start, it remains our view that this year is likely to be a tough one for all retailers, especially in the UK. We definitely see a more confident customer in other markets in Europe."

He said the collapse of smaller rival Focus DIY would probably disrupt trading until the end of the July while its stock was sold, but would be a small help thereafter. Kingfisher bought 31 Focus stores from its administrator.

B&Q sold 2,500 miles of hose-pipe as the UK enjoyed its warmest April on record. Patriotic shoppers also snapped up more than 10,000 royal wedding gnomes, although curiously they bought about 500 more bridegrooms than brides.

City analysts hailed the performance of Kingfisher's Castorama and Brico Depot DIY chains in France.

Nick Bubb, retail analyst at Arden, said: "The big business in France has done very well, with stellar 30 per cent profits growth, and the UK profits growth is solid, but there have been mixed results elsewhere overseas."