Summer rainfall 'hit B&Q profits'

Written By Unknown on Wednesday, September 12, 2012 | 1:14 AM

12 September 2012 Last updated at 02:45 ET

B&Q's owner, Kingfisher, says the summer's heavy rainfall cut its profits in the UK and northern Europe by £30m.

It said the record wet weather across the region had a significant impact on customer numbers, leaving sales of seasonal products such as barbecues down by 7%.

It said this meant it had to make higher than usual cuts in prices to shift summer goods.

Profits for the six months to the end of July were down by 16% at £371m.

Its UK and Ireland business was worst hit by the bad weather.

Total sales were down by 3%, with seasonal product sales falling 11% and customer visits to its stores down by 20% in the wettest weeks.

Kingfisher has stores across the world, offsetting some of the weather-related problems of Northern Europe.

Profits in Russia, for example, where the company is expanding fast, were up by 48%.

Kingfisher's chief executive, Ian Cheshire, said: "This has been a tough first half, with unprecedented wet weather throughout the key spring and summer seasons in Northern Europe."

He said the comapny's actions in clearing excecss stock and pushing sales of indoor products had mitigated the worst effects of the weather and these efforst meant it had "exited the first half in as good shape as possible".

He added that the economic backdrop was likely to continue for sometime.


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