Kingfisher PLC (LSE:KGF) has reported a slight improvement in its third-quarter like-for-like sales reflecting strong demand for energy efficiency products which supported DIY sales.
The retailer's third quarter sales of £3.3bn were up 1.7% in constant currency and 0.2% like-for-like, an improved picture when compared to a 4.1% fall in the first half.
"DIY sales continue to be supported by new industry trends such as more working from home and a clear step-up in customer investment in energy saving and efficiency" the company said.
The FTSE 100 listed group also pointed to a good start to trading in the fourth quarter with three-year like-for-like growth of 16.2% and a 2.8% rise for the three weeks to 19 November 2022.
“Sales remain resilient across our customer segments (DIY and DIFM/trade) and banners, with ongoing strength in energy efficiency product sales and demand from the trade segment," it noted.
But the company lowered the top end of its guidance for full-year 2022/23 adjusted pre-tax profit to a range of around £730mln to £760mln from £730mln to £770mln before.
The owner of B&Q, Castorama, Screwfix and Tradepoint said the guidance included additional P&L investments to strengthen its Screwfix France store opening plan, additional wage support for colleagues, and slightly higher energy costs.
Trade customers continue to see robust pipelines with TradePoint posting like-for-like growth of 1.9% in the third quarter, while Screwfix is gaining significant market share in the UK, Kingfisher said.
The group also said it plans to reduce inventory levels in the second half of 2022/23 as it sells a large part of 'buffer' stock previously held to protect product availability.
In the Q3 trading update, Thierry Garnier, Kingfisher chief executive officer, said: “While we continue to be vigilant against macroeconomic uncertainty, we remain confident in both the resilience of our industry and in continuing to grow ahead of our markets."