Analysts give their reaction to Homebase/Bunnings quarterly results

Credit Suisse said Wesfarmers' quarterly result was largely as expected but there was "a poorer than forecast result from the UK and Ireland", while Deutsche Bank said growth slowed.

Credit Suisse added that the UK and Ireland result "was consistent with our thesis of a more significant rebasing of the Homebase business and consequent acceleration of the new Bunnings  format in that market".

Deutsche Bank said: "While it is early days, transaction growth slowed in the UK".

Homebase/Bunnings saw transactions rise 2.2% in its first quarter in results announced on 27 April. Bunnings UK and Ireland has reported third quarter sales of £245m, with £851m in sales for the year to date.

Owners Wesfarmers did not provide a like-for-like sales update as it did not complete the £340m purchase of the Homebase chain from Home Retail Group until February 2016.

Total sales for the quarter (12 week period 2 January 2017 to 26 March 2017) were £245 million ($400 million). On a like-for-like trading basis across the third quarter, customer participation, as measured by transactions, increased by 2.2%. For the financial year to date, total sales were £851 million ($1,429 million). Customer participation for the financial year to date increased by 6.9%.

UK and Ireland managing director PJ Davis said trading during the quarter was negatively affected by the continued repositioning of the kitchen and bathroom offer, while the performance across other core home improvement and garden products was pleasing.

Newly rebranded UK Bunnings stores are opening, with two in St Albans and planned stores in Milton Keynes, Hemel Hempstead and Folkestone among the 255-store estate.


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Read These Next

Is garden centre pricing becoming more competitive?

Is garden centre pricing becoming more competitive?

Good sales this year appear to have masked the continuing pressure on pricing strategies this year as online offerings and exchange rates make their presence felt.

Hedging - what are the alternatives to box?

Hedging - what are the alternatives to box?

With box blight and box tree moth both posing problems, Miranda Kimberley looks at alternative planting choices.

What are the benefits to garden retail businesses of multi-channel selling?

What are the benefits to garden retail businesses of multi-channel selling?

Gardening Express has become the latest online operator to buy a bricks-and-mortar garden centre, showing how multi-channel selling is developing fast.


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +
Horticulture Jobs

Horticulture Week Top 100 GARDEN CENTRES

Our exclusive ranking of garden centre performance by annual turnover. 

Garden Centre Prices

Peter Seabrook

Inspiration and insight from travels around the horticultural world
 

Read more Peter Seabrook articles

Neville Stein

Business advice from Neville Stein, MD of business consultancy Ovation
 

Read latest articles