Kingfisher delivers profit upgrade despite flagging B&Q sales

B&Q owner Kingfisher has hiked its annual profit outlook despite flagging half-year sales in the DIY chain as Britons held off from splashing out on bigger purchases.The group said B&Q like-for-like sales in the UK and Ireland dropped 1.8% over its second quarter, with sales of so-called big ticket items plunging 8.1%, driven largely by lower demand for bathroom ranges.But the decline marked an improvement on the 4.1% fall seen in the first quarter across B&Q, as heatwaves sparked a recovery in demand for seasonal items.Its Screwfix business also continued to see strong sales, with a 7.1% jump in the second quarter, helping overall UK and Ireland same store sales rise 1.6% in the second quarter and 0.4% over the first half.Kingfisher – which also has a number of home improvement brands across Europe, such as Brico Depot and Castorama – reported a 9.9% rise in underlying pre-tax profits to £404 million for the six months to July 31, though this was boosted by a one-off £14 million UK business rates refund.On a statutory basis, pre-tax profits jumped 18.4% to £400 million.The group increased its guidance for full-year underlying pre-tax profit guidance to between £595 million and £635 million, up from the £565 million to £625 million previously pencilled in, helping shares jump 10% in morning trade on Tuesday.Outgoing chief executive Thierry Garnier said: “While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”Mr Garnier announced plans in May to step down after nearly seven years to head up Netherlands-headquartered supermarket group Ahold Delhaize, but is remaining in place during the hunt for his successor.The group said record summer heatwaves saw a boost in demand for air conditioning and cooling products, as well as outdoor living ranges, but impacted sales of plants, indoor and outdoor paint and fencing – as the heat put many off DIY work.It also helped drive a shift towards online shopping with customers shunning stores in the heat, as B&Q app and internet sales jumped 19.3% in the first half.Read MoreThe group said it had overhauled its bathroom ranges to help revive big-ticket sales, but that waning consumer confidence amid high inflation and the Iran war was holding back spending.Mr Garnier said the outlook for consumer spending over the remainder of 2026 was “not fantastic”, but fairly stable.He told reporters on a media call he would like the upcoming UK Budget to see changes to the onerous business rates system, and to level the playing field between bricks and mortar retailers and online players.But he added: “I hope larger stores won’t be penalised.”Overall, he said the firm was looking for greater certainty.“Stability and certainty are always what we look for as a business, and for me as well as a consumer,” he said.Analysts at Peel Hunt praised a solid set of half-year figures from Kingfisher.They said: “Kingfisher is in a good place, in our view“The group has delivered growth despite a lacklustre market backdrop, especially in big ticket.”