Kingfisher plc, UK-based operator of 900 home improvement stores in Europe and Asia, reported increased fourth quarter and annual sales and announced plans for a new top-level structure. The retailer said fourth-quarter sales were up 2.2% (up 4.0% in constant currencies) and it expects full year adjusted profit to be up around 20%.
The company sells large and small home appliances, home heating and air-conditioning equipment, and outdoor power equipment.
Sales in the fourth quarter of its fiscal year, which ended January 28, 2012, were [euro]2,355 million. Sales were up 4.6% in France, up 1.5% in the UK and Ireland, and down 1.3% in Other International markets.
For the full fiscal year ending Jan. 28, 2012, Kingfisher's preliminary results show sales of EUR 10,831 million, up 3.6% from the previous fiscal year (up 3.3% in constant currencies). By region:
* France: sales were EUR 4,470 million, up 6.3% from FY 2011 (up 4.8% in constant currencies)
* UK and Ireland: sales were [euro]4,338 million, up 0.1% from FY 2011 (up 0.1% in constant currencies)
* Other International: sales were EUR 2,023 million, up 5.8% from FY 2011 (up 7.3% in constant currencies)
The retailer now intends to accelerate its transformation from a "loose conglomerate into a unified home improvement retailer with a clear sense of purpose and ambition." Several executive team changes were made to facilitate the changes, all reporting to Group Chief Executive Ian Cheshire:
* Philippe Tible, currently CEO, Kingfisher France, will retain responsibility for French and Spanish businesses and also assume responsibility for the Castorama businesses in Poland and Russia. He becomes Kingfisher Divisional CEO, Castorama & Brico Depot.
* Euan Sutherland, currently CEO, Kingfisher UK & Ireland, will become Kingfisher Chief Operating Officer.
* Kevin O'Byrne, currently Group Finance Director, will become Kingfisher Divisional CEO, B&Q. Kevin will assume responsibility for the B&Q businesses in the UK and China as well as the B&Q joint venture in Turkey and a strategic alliance with Hornbach in Germany. He will remain an executive director of the company. An internal and external search will identify a replacement for him as group finance director.
* The CEO, Kingfisher International position is being eliminated and Peter Hogsted will leave the company later in the year.
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