Kingfisher, the parent company of B&Q and Screwfix, has revised its profit expectations upward following robust sales in their kitchen range and garden product lines, boosted by favorable summer weather conditions.

Thierry Garnier, the chief executive of Kingfisher, noted “slowly rising consumer confidence,” attributing it to improved mortgage affordability and a stabilization in property sales. He stated,”We have seen a resilient consumer in the UK.”

Kingfisher, which operates DIY stores across Europe, including Castorama and Brico Dépôt in France, reported a 1.9% increase in sales at established stores for the six months ending July 31. This growth was primarily due to increased unit sales, with prices remaining relatively stable.

According to Garnier, sales of significant purchases like kitchens and bathrooms have increased for the third consecutive quarter.

The retailer now provides three kitchen price tiers-Essential, Select, and Signature-to attract a wider range of customers, with the most affordable range accounting for a quarter of kitchen sales in the first half.B&Q saw a 36% year-over-year increase in kitchen installations.

The company cited strong sales growth in seasonal items,including gazebos,pergolas,garden furniture,outdoor paints,and plants,due to favorable weather in the UK,contrasting with unusually cold spring and summer conditions in Poland.

The retail group has also benefited from the closure of over 50 stores of its competitor,Homebase,which entered governance last December. Most of the Homebase locations were acquired by the owner of The Range homeware chain.

B&Q reported a 4.4% increase in comparable sales in the first half,while Screwfix contributed 3% growth. Even though france and Poland showed weaker performance, the retailer indicated improving trends.Kingfisher’s overall adjusted pre-tax profit increased by 10.2% to £368m, and its order book for big-ticket items was up in double digits at the end of July.

kingfisher is now aiming for the higher end of its full-year profit forecast, between £480m and £540m. Shares in Kingfisher increased by 17% in London on Tuesday morning.

The company is among retailers that have been lobbying the government regarding plans for higher property taxes on larger buildings. Garnier described business rates as a “very unfair tax that doesn’t exist elsewhere in Europe”. The British Retail Consortium has warned that up to 400 large shops in the UK could be at risk of closure if these higher charges are implemented.

Kingfisher is “rightsizing” B&Q stores, reducing the size of some locations, but Garnier stated that this move is not related to tax changes and is instead intended to better suit the needs of smaller households.

The retailer reported additional costs of £145m due to wage inflation, increased UK employer national insurance contributions, higher social taxes in France, and new packaging fees in the UK.

The company anticipates offsetting these costs through improved gross profit margins and cost-saving measures. It also benefited from a £33m one-off business rates refund in the UK.

Kingfisher recently announced 672 job cuts at B&Q, primarily in stores, with 65 positions being eliminated at its London headquarters, as part of its cost-reduction efforts.

The company is renegotiating leases in the UK and has implemented self-checkouts and enhanced AI tools.Customers can now use a visual search tool that scans a broken part and quickly identifies a replacement from the B&Q catalogue.

“We have seen a resilient consumer in the UK,”

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