Work from home insulates Kingfisher from High St gloom
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WFH isolates Kingfisher from the gloom of High St as clients splash out to keep their workspaces warm
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Kingfisher has been boosted by hordes of office-shy customers splashing on insulation to keep their home workplaces warm.
The owner of B&Q said sales of attic insulation rolls more than doubled in the three months to November compared to the same period a year earlier.
It came as the trend of working from home (WFH) continued despite lockdowns being lifted and the government encouraging staff to return to their desks.
Cold comfort: B&Q owner Kingfisher said sales of attic insulation rolls more than doubled in the three months to November compared to the same period a year earlier
Those eschewing a return are rushing to increase the energy efficiency of their homes to offset rising gas and electricity bills.
Sales of smart room thermostats, thermostatic radiator valves and central heating controllers also increased. It has also been boosted by demand for products that can lower bills.
Rival Wickes said in September it was also boosted by booming sales of insulation products. Thierry Garnier, CEO of Kingfisher, said: ‘Although the market situation remains challenging, DIY sales continue to be supported by new trends in the industry, such as more home appliances and a marked increase in customer investment in energy savings and efficiency. .’
The group, which also owns Screwfix, increased total sales in the quarter by 1.7 percent to £3.3 billion.
But rising labor costs and energy costs will hurt profits, and it cut its profit forecast for the year from £770m to £760m. Shares fell 1.6 percent, or 4.1 pence, to 249.5 pence, and is down 28 percent this year.
Stock soared during lockdowns as people made improvements to their homes and converted spare rooms into offices, with Kingfisher becoming the third retailer in the UK with an annual profit of £1bn.
But as demand normalized, a slowdown in the housing market and the rapidly rising cost of living threaten to put further pressure on sales.
Kingfisher said it has seen “good momentum” since the end of October, with sales up 2.8 percent from the same period last year.
Garnier said, “While we remain vigilant about macroeconomic uncertainty, we remain confident in the resilience of our industry and continued growth for our markets.”
AJ Bell managing director Russ Mold said: ‘The retailer has shown impressive resilience.
The need to ensure homes are energy efficient and to save on exorbitant heating bills is another business driver that could continue.”