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Kingfisher, owner of B&Q and Screwfix, will attempt to reassure investors the pandemic-fuelled DIY boom is staying strong.
The group will report its latest financial results this week and will aim to ease any investor concerns, despite waning consumer confidence.
Kingfisher performed strongly during the pandemic as customers stuck in their homes sought to invest and improve their properties. However, shares in the FTSE 100 are now trading roughly a quarter below their autumn peak.
Danni Hewson, financial analyst at AJ Bell, said market jitters related to the conflict in Ukraine could be having an impact on the stock but this was “not casting a direct cloud” and its recent slump could be driven by worries over dampened demand.
She said: “Fears that the lockdown and pandemic-inspired DIY boom is cooling is one explanation and Kingfisher is showing signs of a slowdown in sales, even if revenues continue to exceed management and analysts’ expectations.”
The company has recently upgraded forecasts predicting a decline over the second half of the financial year and investors will be hoping for further improvements to the firm’s outlook at the full-year results announcement on March 22.
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Thierry Garnier, chief executive, said in September last year that the company was due to post a drop of between 3 per cent and 7 per cent in the second half of the financial year to January, improving on previous forecasts which suggested sales could fall by as much as 15 per cent.
In the firm’s November trading update, it reported that like-for-like sales were even better than the improved prediction, falling 2.4 per cent in the third quarter.
Shareholders will hope this will reflect a more stable home improvement market and an easing of supply and labour pressures.
Kingfisher is expected to post a jump in profit to £950 million for the past year, however, investors will be keen to hear how soaring costs in the construction sector could affect future profitability.
Meanwhile, home improvement rival Wickes is also due to update shareholders on its full-year results on Friday March 25.
It comes after the company, which was spun off Travis Perkins during the pandemic, delayed the publication of its accounts on Tuesday after KPMG requested more time to complete its audit of the business.
The delay may have unnerved investors but they welcomed news the firm was still expected to post a pre-profit of at least £83 million for the year.
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