ClickAJob News

Poor weather and an early Easter have led to poor sales at DIY retailer B&Q, owner Kingfisher said.

Like-for-like sales in the first quarter at B&Q stores fell 8.1 per cent as a cold spring discouraged customers from buying outdoor furniture – sales of these products were down 40 per cent, the retailer said.

Sales of indoor products rose 1.7 per cent, however, despite the weaker consumer backdrop.

Overall, profit fell to £29 million from £33 million last year.

However, international sales offset the UK performance and Kingfisher, Europe's biggest home improvement retail group, reported total retail sales of £4.5 billion for the 13 weeks to May 3rd 2008.

Kingfisher, which operates DIY stores all over the world, said its business in Eastern Europe was performing better.

A buoyant construction market in Poland meant its Castorama and Brico Depot brands posted like-for-like growth of 13.6 per cent. Profits in the region were up 14.1 per cent to £27 million, Kingfisher said.

But B&Q China is still making a loss, as the property market has taken a dive, Kingfisher said. Like-for-likes declined 15.3 per cent over the period, losing the group £8 million. Sales in the region are not likely to improve in the near future, Kingfisher warned.

Group chief executive Ian Cheshire said: "In a busy first quarter, we have reworked our 2008 budgets to reduce our reliance on sales growth in what could be a challenging year, and put in place an overall plan with a clear target for the next three years."

The group added it is focussing on delivering shareholder value over the next year, with store revamps and a management shake-up.