Cool spring hits sales but profits still rise 15 per cent at Kingfisher

A COOLER spring has hit sales at B&Q, the UK's biggest DIY chain, but a squeeze on suppliers has helped boost first-quarter profits 15 per cent at parent group Kingfisher.

Figures revealed yesterday showed that like-for-like sales at B&Q fell 2.8 per cent in the 13 weeks to 1 May as shoppers put off spring purchases amid a combination of snow and a chillier March and April.

That contrasted sharply with a 3.2 per cent jump in quarterly sales in the same quarter last year when spring temperatures soared and drove sales of outdoor products up 30 per cent.

A plus for B&Q this time around was that the poorer weather helped push roof insulation sales up by 28 per cent, while cost-saving measures such as supply chain efficiencies drove retail profit up 15 per cent to 146 million.

Ian Cheshire, Kingfisher's chief executive, said the firm had seen a "tough first quarter", and that "the headwinds we anticipated at the start of the year look set to continue".

While sales of B&Q's decorating products were resilient – down 1 per cent – sales of more seasonal goods were 5 per cent lower year-on-year as the chain was forced to cut prices in a competitive market and in the light of tough trading comparisons.

Retail profits at Kingfisher, which also includes Castorama and Brico Depot in France, were helped by stronger sales of higher-margin products, supply chain efficiencies and a squeeze on costs in line with lower sales volumes.

Total sales in the UK and Ireland fell 2 per cent to 1.17 billion with the trade and Irish markets "particularly challenging".