Kingfisher maintains its annual forecast, demand resilience | Photo credits: © Kingfisher plc
LONDON, May 23 (Reuters) – Kingfisher confirmed its full-year earnings guidance on Monday citing resilient demand for DIY items as its first-quarter sales topped pre-pandemic levels.
The British retail group, owner of the Castorama and Brico Dépôt brands in France, reported a drop in like-for-like sales of 5.4% year-on-year during the quarter ended April 30, but an increase of 16.2% over three years.
Kingfisher also reported good momentum in the second quarter, with comparable sales down 2.5% for the two weeks to May 14, but up 21.8% compared to 2019.
The group says it continues to effectively manage inflationary pressures and the availability of its products is good, approaching pre-pandemic levels.
The British company reiterated its forecast for the full financial year 2022-23 of an adjusted pre-tax profit of around 770 million pounds (912 million euros), down from the profit of 949 million pounds in the 2021-22 fiscal year, which had been boosted by the pandemic.
The company also announced a new £300 million share buyback program.
Kingfisher stock, down 27% year-to-date, closed Friday at 246.8 pence, valuing the company at £5 billion. (Reporting by James Davey; French version Elena Vardon, editing by Kate Entringer)