Shares of Kingfisher plc (LON: KGF) today plunged 5% despite the home improvements retailer reporting improved November sales figures despite the new lockdown measures in a classic buy the rumour, sell the news scenario.
The British retailer reported that sales in the two weeks to November 14 rose 13%, a slight decline to the 17% growth witnessed in the three months to October 31. The company reported strong demand in the paint, decorating materials, outdoor, building materials and kitchen segments.
However, the company is facing delays from its raw material suppliers, which has affected the in-store availability of some items.
Kingfisher experienced a surge in demand during the first week of November as British consumers shopped ahead of new lockdown measures that were set to begin on November 5. Foot traffic at most of its UK locations fell significantly after the lockdown restrictions came into effect.
The retailer has kept all its 1,370 stores open for in-store shopping and to act as collection centres for click & collect orders.
Kingfisher did not provide any revenue or profit forecasts but mentioned that its pretax profits would include £175 million in temporary costs savings coupled with one-off COVID-19 costs amounting to £45 mln.
The company has already repaid that £23 million furlough payment received from the British government and had total liquidity of £3.5 billion as of November 17.
Kingfisher share price
Kingfisher shares plunged 5% today to trade at 284.3p having dropped from Wednesday’s closing price of 299.3p.