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B&q Profit Slump Hits Kingfisher

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Profits at UK DIY chain B&Q have more than halved after it cut prices during autumn in a bid to shift stock.

Retail profit at B&Q was £50.3m for the 13 weeks to 29 October, down from £106.7m in the same period last year.

The fall dragged profits at B&Q's parent firm Kingfisher down 21% to £157.1m for the quarter.

"The UK retail environment continues to weaken, significantly impacting B&Q's sales and profits," said Kingfisher's chief executive Gerry Murphy.

B&Q's total sales were down 3.9% to £952.7m, while like-for-like sales - which strip out the effects of store openings and closures - fell 8.4%.

Gross margins at B&Q were down two percentage points, reflecting "price reductions, promotional activity and stock clearance," Kingfisher said.

The company added that if current market conditions continue, "retail profit margin will fall further in the fourth quarter".

"Continued weakening consumer demand for housing-related products, together with widespread price promotion and rising costs, is seriously impacting UK retail performance," Mr Murphy said.

He added that the difficult trading conditions showed no sign of abating.

"I don't anticipate a return to a more buoyant market anytime soon," said Mr Murphy.

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Profits at UK DIY chain B&Q have more than halved after it cut prices during autumn in a bid to shift stock.

Retail profit at B&Q was £50.3m for the 13 weeks to 29 October, down from £106.7m in the same period last year.

This is a better indicator of what is happening in the housing market than any of the VI stats.

Everything is on course...rapidly slowing growth, higher unemployment will follow and there's your trigger for the crash.

Pity all those fools being sucked into the market now.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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