Kingfisher PLC (LSE:KGF) said it expects full-year profits to be towards the higher end of its previous guidance as it announced strong sales in the third quarter compared with two years ago.
The home improvement group, which owns DIY retailer B&Q in the UK and Castorama in France, said like-for-like (LFL) sales totalled £3.2bn in the three months to October, down by 2.4% on the same period last year, when demand soared because of Coronavirus (COVID-19) lockdowns.
Compared with pre-pandemic 2019, sales soared 15% in the third quarter.
“These are even stronger sales trends given the backdrop of an increasingly 'normalised' consumer spending environment. Demand remains supported by what we believe are enduring new industry trends, including more working from home,” Kingfisher chief executive Thierry Garnier said.
Kingfisher said it has seen a good start to the fourth quarter, with LFL sales to 13 November up 13.2% on a two-year basis.
It expects second-half LFL sales to be towards the higher end of its previously guided range of -7% to -3% compared with last year and 9%-13% versus two years ago.
Full-year adjusted pre-tax profit is forecast to be towards the higher end of the £910mln-£950mln guided range, the company said.
Many retailers are struggling with shortages due to global supply chain disruption and labour shortages, but Kingfisher said it has maintained and even improved its product availability.
“This has supported our market share gains and allowed us to upweight promotional initiatives in the quarter. We have also continued to manage inflation pressures effectively, while retaining highly competitive pricing,” said Garnier.