"People could actually do a really decent project over that period," chief executive Ian Cheshire said on Thursday, noting the extra holiday on April 29 will come only a few days after Easter, traditionally the busiest time of the year for home improvements as people tackle their gardens.
"We're certainly going to gear up on the gardening and outdoor leisure fronts," he told reporters, adding the group had just launched a set of two royal wedding gnomes decked in Union Jack hats and wedding outfits for 20 pounds.
Cheshire also pointed out, however, that many customers might take advantage of the long break to go abroad, and hopes of widespread barbecue parties could be spoilt by wet weather.
He was speaking after Kingfisher said profits for the year ended January would be towards the top end of analysts' forecasts, with a drive to improve profit margins adding impetus to sluggish fourth-quarter sales growth.
The group, which runs market leader B&Q in Britain as well as the Castorama and Brico Depot chains in France and elsewhere, said sales at stores open over a year rose 0.6 percent in the 13 weeks to January 29. Growth in France and Poland helped to offset weaker performances in Britain and China.
Analysts expect the group to make a full-year profit before tax and one-off items of 661-672 million pounds, it said, up from 547 million the year before.
Kingfisher, with over 840 stores in eight countries, has been cutting costs to cope with tough trading conditions, as well as improving margins by buying more goods centrally and from cheaper manufacturing centres like Asia.
Altium Securities analyst Philip Dorgan said there was more to come with, for example, the group embarking on a drive to boost sales of higher margin own-brand goods. He was also optimistic on further overseas expansion, which could be outlined at a strategy update with annual results on March 24.
At 9:10 a.m. British time, Kingfisher shares were up 0.8 percent at 259.3 pence, just ahead of a 0.3 percent rise on the STOXX Europe 600 retail index. The shares have outperformed that index by about 18 percent over the past year.
STRENGTH OVERSEAS
Kingfisher, world number three behind U.S. groups Home Depot and Lowe's, said underlying sales at B&Q fell 0.3 percent in the fourth quarter, the fifth quarterly decline in a row, as severe winter weather disrupted the delivery and installation of kitchens. However, gross margins edged up.
Cheshire said trading in Britain in the first half of this year would be "particularly tricky," joining the ranks of retailers to highlight the pressure on shoppers from austerity measures and potentially higher interest rates.
But he said the group would continue to benefit from its drive to boost profitability, as well as the strength of its overseas businesses, which account for over half of group sales.
Underlying sales in France were up 2 percent in the fourth quarter, with a 4.7 percent increase at Castorama tempered by a 1 percent decline at the more building trade-focussed Brico Depot. Margins were also up slightly across the French business.Underlying sales in Poland were up 3.3 percent, returning to growth after four quarters of declines, but were down 16.2 percent in China after a big rise the same time last year.
Kingfisher said the Chinese business, which it has been shrinking and refurbishing in a bid to return to sustainable growth, made a profit in the quarter for the first time in over three years and its turnaround was on track.
Cheshire said he would decide on the future of the Chinese business later this year.
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