Darty drags Kingfisher down: The Investment Column
Thursday 16 January 1997
Stripping out new store openings, like-for-like sales rose by 7.8 per cent, which was better than Boots and only marginally behind Dixons.
The group figure included double- digit gains from both Woolworths and Comet. This was impressive as both were up against strong comparisons the previous year. The performance from Woolworths was even better given that the toy market appears to have lost sales to rival products such as sports clothing this year.
And if the recent figures from Adams were anything to go by, then the childrenswear market has not been easy either.
B&Q did well, buoyed by the gradual recovery in the housing market. And Superdrug delivered a 5 per cent increase in like-for-like sales.
Ironically it is now Darty, the French electrical chain, which is dragging the group performance back. Its like-for-like sales rose by just 2.4 per cent.
Only a couple of years ago it was Darty which was Kingfisher's saviour when internal problems damaged the performance of Comet and Woolworths, resulting in the group's calamitous 1994 profits warning.
Though Kingfisher's shares have risen by more than 60 per cent since then, yesterday's bout of profit taking makes the shares look attractive once more at 654.5p.
On upgraded analyst profit forecasts of pounds 380m this year and pounds 445m next time, they trade on a forward rating of 16 falling to 14. This is a discount to the sector that is due more to the disappointments of 1994 than fundamentals. It is worth pointing out that just a year ago analysts were forecasting Kingfisher 1996/97 profits of just pounds 310m.
Woolworths' problems back then were due to errors that have been sorted out rather than any underlying difficulty.
Comet should benefit from the PC boom and B&Q should be selling paint and pliers like no tomorrow if the housing market forecasts prove true.
If Darty returns to form as well, then Sir Geoff Mulcahy will have pulled off a remarkable recovery. The company has disappointed before, but the shares look good value.
- 1 Pope Francis issues top 10 tips for happiness
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 Now diplomacy has failed, boycotting Israel might be the only way we can protect the people of Gaza
- 4 Israel's propaganda machine is finally starting to misfire
- 5 Kelsey Grammer forgives the man who raped and murdered his sister in 1975
Russell Brand accuses Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness
Kenny Ireland dead: Benidorm actor dies aged 68
Justin Bieber posts Instagram photo of Orlando Bloom crying after Ibiza fight 'over Miranda Kerr'
Air Algerie AH5017 crash: Jet fell 30,000 feet in three minutes ‘due to violent storm’
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...