Euro and winter push profit Kingfisher down by 12% | RetailDetail

Euro and winter push profit Kingfisher down by 12%

Euro and winter push profit Kingfisher down by 12%

British DIY-group Kingfisher had to announce a drop in profit for the first time in four years: in the past financial year, that ended on 31 January, the profit stood at 564 million pound (641 million euro), 12% less than the 640 million pound (770 million euro) of the year before.

Sales drop as well

Globally Kingfisher, the company above brands such as B&Q, Castorama, Brico Dépôt and Screwfix, saw its sales drop to 10.573 billion pound (12.4 billion euro), 2.4% less than for the financial year 2011/2012.


The drop is mainly due to disappointing sales in the United Kingdom and Ireland, caused by low consumer trust and extremely bad weather conditions. Sales dropped by 2% to 4.3 billion pound (5 billion euro). Especially B&Q struggled and had to take a hit of -3.6% in sales. The company also suffered from the bad weather: seasonal sales were 11% lower than in the previous year.


In Ireland things went completely awry: Kingfisher had to request protection from creditors in January for its nine locations of B&Q Ireland. The recession in the Irish Republic made sales of the company plummet. Kingfisher has already set 21 million pound (247 million euro) aside to handle its Irish business.


Euro and zloty also weigh on numbers

For Europe the exchange rates of the euro and the Polish zloty also were a spoilsport: fifty million less profit was made because of them.


The biggest disappointment was France, where sales dropped by 6.2% to 4.192 billion pound (4.9 billion euro). The rise of 2% at Castorama picked up the slack of Brico Dépôt, which suffered big because of the slowing construction market, but the weakening of the euro nullified the rise of 0.3% at constant exchange rates completely.

Questions or comments? Please feel free to contact the editors

Belgian paint web shop expands into France


An expansion into Wallonia and France beckons for Belgian paint web shop and its new counterpart Moreover, the company is looking for a new financial partner to help with this move.

Hornbach exceeds four billion euro turnover


German DIY chain Hornbach’s turnover surpassed 4 billion euro in the past fiscal year. The overall turnover growth was 5.1%: the Dutch market achieved double-digit growth, but the German home market stagnated.

Kingfisher spearheading the circular economy


Kingfisher has been one of the front runners in transforming its business into a more circular business. The focus? Smarter consumption and get 'more from less'.

Les Mousquetaires acquires Bricorama


The French Bureau of Competition has approved franchise group Les Mousquetaires' acquisition of DIY chain Bricorama. The deal will catapult Les Mousquetaires into the third position in the French DIY industry.

Intergamma's dispute with Bricorama persists


Intergamma’s issues with CRH’s shares still have not been resolved and it seems the dispute with French shareholder Bricorama has now boiled over. The latter even wants the Chamber of Commerce to intervene.

Bricorama does not want to sell Gamma


French DIY company Bricorama will not sell Gamma’s Belgian and Dutch stores. There was a longstanding rumour to that nature, but the company has now refuted those claims.