Kingfisher (LON:KGF) has made a strong start to the financial year as sales were helped by warm weather and the Royal Wedding bank holiday in the UK.
However, the outlook for the rest of the year was cautious with the home improvement retailer foreseeing a “tough one for all retailers”, especially in the UK. Shares in Kingfisher slipped 3.5 percent to 272 pence in early deals, making it the heaviest faller in the FTSE 100.
“I am pleased that we have made a strong start to the year, capitalising on more favourable weather conditions right across Europe and extended public holidays in the UK,” said chief executive Ian Cheshire.
“Whilst we have got off to a good start, it remains our view that this year is likely to be a tough one for all retailers, especially in the UK. It is also likely that the early spring weather will have brought forward some of our outdoor seasonal sales.”
“So we remain very focused on our well established programme of self-help to deliver a solid full year result, especially with the key summer trading period in France still ahead of us.”
Total group sales in the 13 weeks to 30 April climbed 3.3 percent to £2.73 billion and retail profits climbed 19.1 percent to £174 million. In constant currencies, sales and profits were up 4.7 percent and 20.9 percent.
Kingfisher noted that performance in France was particularly strong with sales growing ahead of the market.
Net cash rose from £86 million in May 2010 to £283 million.