Kingfisher PLC (LON:KGF) reported a 66% collapse in its full-year profits but said it has seen strong sales in recent weeks following the easing of the coronavirus lockdown as the DIY retailer tries some new fixes for its longtime problems.
The owner of the B&Q and Screwfix chains said group like-for-like sales were down 24.8% in the first quarter from February 1, 2020, through to April but have increased 21.8% so far from the start of May to June 13, 2020.
Online sales have been up fourfold since mid-March, while the phased reopening of stores has taken place in the UK and France from mid-April, and it has seen sales improve since then.
This comes after its results for year to end-January, 2020, showed sales fell by 1.5% to £11.5bn, profit before tax drop to £103mln from £300mln the year before and no final dividend.
As of June 12, the group said it had access to more than £3bn of cash resources, including around £2bn of cash in the bank.
Kingfisher's chief executive Thierry Garnier, who started a year ago, has, like his many predecessors, unveiled a new strategic plan, his being called 'Powered by Kingfisher’ and said to be all about “distinct retail banners addressing diverse customer needs, 'powered' by the group”.
In the results statement, Garnier said: “While the coronavirus crisis has obviously shifted our immediate priorities, we have continued to plan for the longer term and implement our new strategic plan.”
He added: “Our clear intent is to become a more digital and service orientated company, using our strong store assets as a platform.”
Kingfisher shares were up 5% to 214.5p in early trading on Wednesday and are now down just 3.5% since the start of the year.