Coronavirus: B&Q boosted by 'exceptional demand' during lockdown
Shares in owner Kingfisher rose as its boss predicted DIY would prove more resilient than other sectors during the downturn.
Wednesday 17 June 2020 16:58, UK
B&Q owner Kingfisher has reported a surge in sales after the chain saw "exceptional demand" during the lockdown period.
Chief executive Thierry Garnier said people were taking on DIY projects as they were spending more time at home and had fewer leisure and travel options.
Kingfisher said like-for-like sales for the second quarter ending on 13 June were 21.8% ahead of the same period last year, lifted by online revenues rising by as much as fourfold.
The reopening of B&Q stores in the UK from mid-April - which saw long queues build up outside branches - contributed to the strong performance as well.
Kingfisher, which also owns Screwfix, plus European chains including France-based Castorama, is recruiting 3,000-4,000 more staff to cope with demand.
The group said it could not provide specific guidance for the 2020-21 financial year given the uncertainty around the coronavirus pandemic.
Mr Garnier said an economic downturn would particularly hit demand for big projects such as kitchens and bathrooms.
But he added: "I still think that DIY overall will prove more resilient than the average."
Shares rose 6% on the update, which came as Kingfisher also reported "disappointing" results for the year to the end of January.
Pre-tax profits tumbled 66% to £103m as sales slipped and the group took a one-off charge of £441m to reflect a gloomier outlook for parts of the business.
The pandemic put a further dent in trading, with sales down 24.8% in the first quarter of the current financial year.
In the UK, Kingfisher's B&Q and Screwfix chains - classed as "essential" stores - were eligible to remain open during the lockdown that started on 23 March.
But managers decided to close branches in order to put in place social distancing measures, before a phased reopening starting in mid-April.
Weekly sales figures for the UK and Ireland fell by as much as 70% during the early stages of lockdown but then bounced back sharply and were ahead by nearly 30% in the week ending 13 June.
Kingfisher said all 289 UK stores were now open while most of the country's 682 Screwfix stores had been reordered in order to reopen safely by the end of May.