A strong run of hot weather boosted sales at B&Q owner Kingfisher PLC (LON:KGF) in the second quarter as more customers stocked up on barbecues and other outdoor items.
However, shares fell 2.2% to 281.10p in morning trading as analysts pointed out that Kingfisher's recent performance has relied too much on good weather conditions.
The retailer, which also owns Screwfix, reported a 3.4% increase in sales to £3.25bn for the quarter ended July 31. On a like-for-like basis, sales grew 1.6%, rebounding from a 4.0% decline in the first quarter when snowfall and icy temperatures in February and March kept customers away.
Strong UK sales 'more a function of a scorching summer'
In the UK and Ireland division, like-for-like sales increased 4.2%, including 3.6% growth at B&Q and a 5.5% gain at Screwfix.
Kingfisher said sales at B&Q were buoyed by demand for weather-related categories while Screwfix sales were lifted by the opening of 12 new outlets during the quarter.
READ: Beast from the East and weak UK consumer demand hurts Kingfisher sales
"At first glance, UK results represent a marked improvement," said George Salmon, equity analyst at Hargreaves Lansdown.
"However, the strong sales figures are more a function of a scorching summer than any underlying progress. Strip out the impact of summer items like barbeques and garden furniture, and sales, which headed south over the winter, have continued to fall. That’s quashed any hopes that B&Q would benefit from the recent problems at Homebase."
Another weak performance at Castorama
Like-for-sales in France dipped 1% as its DIY retail store Castorama continued to struggle in part due to weaker footfall and the impact of restructuring efforts. Castorama posted a 3.8% drop in like-for-like sales, offsetting a 2.6% rise at the Brico Depot stores in France.
In the other international category, like-for-like sales edged up 1.4%, driven by growth in Poland.
"In the second quarter, I'm pleased that we grew our sales after the exceptionally harsh weather conditions in the first quarter," said chief executive Véronique Laury.
"In B&Q, Screwfix and Brico Dépôt France we delivered good sales growth. However, the performance of Castorama France has been more difficult and as a result, we have put additional actions in place to support our full year performance in France with the benefits expected to come through in the second half."
Laury kicked off her transformation plan two-and-a-half years ago to simplify operations, improve its online offering and unify product ranges.