Kingfisher's results are looking sunnier

But they need to tackle their weakness: DIY.

Kingfisher has revealed that total sales across its UK & Ireland fascias – B&Q and Screwfix – increased +3.6 per cent during the 10 weeks to 13 July 2013, with LFLs growing +2.5 per cent.

This update is certainly a sunnier one for Kingfisher. One of the hottest UK summers for many years has brought with it a surge of spending on gardening and outdoor products.  This more positive update comes off the back of a torrid Q1, where notably miserable conditions across the retailer’s key European locations negatively impacted growth during the traditionally critical Easter period. Moreover, while weakness in its core DIY categories continues to represent a cloud on the horizon, Kingfisher is being proactive in its response.

In the UK, this period saw B&Q benefit strongly from the more positive weather, with higher demand for gardening products and outdoor furniture. For example, B&Q saw sales of wooden outdoor furniture grow 56 per cent, while natural stone tiles were 6 per cent ahead. A more austere British consumer is increasingly looking to make the most of their gardens, with BBQs and dinner parties being viewed as attractive alternatives to going out to bars and restaurants. Indeed, while the performance of outdoor categories will inevitably continue to be heavily shaped by seasonal fluctuations, the more frugal post-recessionary consumer mindset means that these categories will present significant opportunities.

Kingfisher is being proactive in its response to weakness across its core DIY categories, which continue to struggle amid weakness in the housing market and generally low consumer interest. To this end, B&Q is gaining market share off the back of investment in stores, a focus on value and the continued development of ranges and services. Moreover, a recent deal with Morrisons to share space in Meir Park, Staffordshire, reflects an understanding of the long term necessity to reduce space in response to structural changes and overcapacity in the UK DIY category. Elsewhere, Kingfisher’s UK trade fascia, Screwfix has achieved a strong Q2 performance, boosted by new outlets and competitive pricing. 

Kingfisher faces a number of challenges to overcome in the medium-long term. Most notably, until the housing market improves significantly, consumer interest in DIY will remain weak.  Linked to this, while the ultimate potential of the Coalition’s Help To Buy scheme remains uncertain, the early signs have been promising. Indeed, we do believe the DIY market will eventually reach a stable and settled level towards the back end of next year. In relation to Kingfisher itself, we retain our view that while it is a victim of circumstance the company is both well run and proactive. Investments in stores, a focus on value and the continued development of ranges and services put it in a strong position to grab share and take advantage of the upturn, when eventually materialises.

Photograph: Getty Images

 Managing Director of Conlumino

Getty
Show Hide image

Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland