A cold, wet Easter has apparently convinced British homeowners that now is not the time to buy a barbecue, much to the dismay of B&Q. The home improvement chain, owned by Kingfisher, saw like-for-like sales in the UK and Ireland dip 0.9% between February and April, its first quarter. B&Q sales fell 4.1% during that period, while its sibling Screwfix enjoyed a 4.1% climb in revenue, proving that while people may not want to grill, they still need to fix things.
Kingfisher, which also owns Castorama and Brico Dépôt across six European countries, blamed the rain and cold around Easter for putting people off buying BBQs, garden furniture and plants - seasonal products that account for a fifth of the company's total revenues. B&Q also sold fewer bathroom fixtures, though kitchen sales rose 4.5% after new ranges were introduced. The overall UK bathroom market was down 2% in the first quarter, while kitchens were flat, which is about as exciting as a beige tile.
Despite the soggy start, Kingfisher stuck to its full-year outlook, expecting pre-tax profit between £565m and £625m. That cheered investors enough to push the share price 3% higher on Tuesday, topping the FTSE 100 index. CEO Thierry Garnier called it "a resilient start" and promised disciplined cost management, which is CEO-speak for "we're not panicking yet."
Russ Mould, investment director at AJ Bell, noted that blaming weather is often seen as a "dog ate my homework" excuse, but since Kingfisher didn't downgrade its forecasts, investors stayed on side. He pointed to strong growth in Screwfix and a strategy of chasing trade customers, who are "more reliable and consistent" than ordinary consumers - because professionals actually need tools for their jobs, unlike the rest of us who just want a nicer patio.
Kingfisher's sales to trade customers rose 17%, excluding Screwfix, suggesting that while the British public may be too cold to DIY, they're happy to pay someone else to do it for them.