Home improvement retailer B&Q has reported a decline in third quarter revenue but continued to see positive growth within its showroom sales.
According to the latest Kingfisher, parent company of B&Q, trading update for Q3 to 31 October 2022, total group sales were up 1.7% to £3.3bn, with strong energy efficiency product demand supporting DIY sales.
As for B&Q, sales were down 2.7% to £935m on last year, but when compared to pre-pandemic levels, sales were up 13.1%.
“Showroom sales performed well in the quarter, with resilient demand in the bathroom & storage category. Whilst outdoor sales were down YoY given a strong comparative from the prior year’s clearance activity, sales remain strong versus pre-pandemic levels. Overall, LFL sales of weather-related categories were -11.5%,” the retailer said.
“LFL sales of non-weather-related categories were -1.9%. B&Q’s total e-commerce sales moved into positive YoY growth in Q3, driven by its marketplace proposition which continues to see strong growth since its launch in March. Marketplace reached a penetration of 13% in October. TradePoint, B&Q’s trade-focused banner, continued to outperform with LFL sales +1.9% and 3-year LFL sales +29.5%. TradePoint sales were 23% of B&Q sales.”
Kingfisher added that the fourth quarter has started well, with good trading momentum. For the three weeks to 19 November 2022, LFL sales were +2.8%. The group anticipates adjusted pre-tax profit to be in the range of c.£730m to £760m.
Thierry Garnier, Chief Executive Officer, said: “Our sales trends continued to be resilient, with like-for-like sales 15.3% ahead of pre-pandemic levels in the quarter. This was supported by continued market share growth, including strong gains at Screwfix, TradePoint and Castorama Poland. While the market backdrop remains challenging, DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency. DIFM and trade activity also continues to be well supported by robust pipelines for home improvement work.
“Competitive pricing remains a priority. With our customers facing rising living costs, we are determined to make home improvement affordable and accessible – particularly through our own exclusive brands which represent 45% of our sales. While we continue to be vigilant against macroeconomic uncertainty, we remain confident in both the resilience of our industry and in continuing to grow ahead of our markets.”