Kingfisher Cautious On Outlook As 2Q Sales Fall

22nd Jul 2010 07:11

By Simon Zekaria Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Kingfisher PLC (KGF.LN), Europe's biggest home improvement retailer, Thursday said it remains cautious on the outlook for consumer spending after reporting a fall in second-quarter same-store sales. Chief Executive Ian Cheshire said it is an "uncertain environment for our customers right across Europe." Cheshire said the group's first-half "cash and profit outturn remain on track." Stripping out currency fluctuations, sales from stores open at least a year fell 0.8% in the 10 weeks to July 10 from a year earlier. That compares with a 1.8% fall in the first quarter. U.K. and Ireland second-quarter same-store sales fell 4.4%. Same-store sales in France and in other international markets rose 2.6% and 0.8% respectively. Stripping out currency fluctuations, group sales increased 0.3%, compared with a 0.2% decline in the first quarter. Kingfisher only gave sales figures in its trading statement. It will report full interim results on Sept. 16. Kingfisher is Europe's biggest home improvement retailer by sales and the third-largest in the world with more than 830 stores in eight countries in Europe and Asia. Its main brands are B&Q, Brico Depot, Castorama and Screwfix. The company also has a 50% joint venture business in Turkey with the Koc Group and a 21% interest in, and strategic alliance with, German home improvement retailer Hornbach. Kingfisher shares closed at 223 pence Wednesday, valuing the company at GBP5.28 billion. By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; [email protected] (END) Dow Jones Newswires July 22, 2010 02:11 ET (06:11 GMT)