Kingfisher on track despite lfl sales drop

22nd Jul 2010 07:33

DIY retailer Kingfisher, which owns the B&Q chain in the UK, reported a small drop in like-for-like sales in the 10 weeks to 10 July, but said half year profits remain on track.Like-for-like sales were down 0.8%, with total sales up 0.3% in constant currencies.In the UK & Ireland, B&Q like-for-like sales were down 4.3% although with a higher gross margin percentage achieved on those sales, B&Q's gross profit was ahead.In France, Castorama like-for-like sales grew 3.1%, supported by the introduction of new products, its store modernisation programme and favourable weather. Brico Dépôt like-for-like sales were up 1.9%.Chief executive Ian Cheshire said: "Consumer spending remains under pressure, notably in the UK, and so we continued to focus on carefully targeting our promotions to drive profitable sales, improving our cash margins and vigorously controlling our costs. As a result our expectations for first half cash and profit outturn remain on track." "While we remain cautious about the outlook for consumer spending, we are confident that the strengths of the Group and our well established self-help initiatives leave us well-placed to continue our good progress over the balance of the year."