Comet falls further as Kingfisher soars

Retail Stores still struggling but parent company records a 15 per cent jump in turnover.

Retail chain Kingfisher has revealed a healthy rise in sales throughout its group, except Comet which has continued its slide.

For the third quarter ended 31 October, the Kingfisher group showed sales of #1.72 billion, a 15.2 per cent jump. The figure represented a 5.1 per cent rise in like-for-like sales. Comet was the only exception, with like-for-like sales dropping by 1.6 per cent.

Comet followed the trend set by the first-half results ended 1 August. Stores let the group down with operating profit creeping up just #100,000 million to #2.7 million, while like-for-like sales fell by 0.6 per cent.

Sir Geoffrey Mulcahey, chief executive of Kingfisher, commented on the third-quarter figures: 'We believe our businesses are well positioned to weather the effects of lower consumer confidence. Our underlying sales growth in the third quarter was solid, although not as strong as it was in the first half.

Since the period end, sales growth has continued to slow and Christmas trading is proving very competitive.'

In an attempt to stem further falls, Comet will launch a home shopping internet site in the New Year to increase sales and cash in on e-commerce.

The overall figures were ahead of analyst's predictions and shares in Kingfisher climbed 11 per cent to a six-month high of 604p.

George O'Connor, analyst at Granville Research, commented: 'Comet having a drop at the same time as Dixons re-enters the FTSE 100 is interesting. Dixons is doing well, especially with Freeserve. Over the past quarter it has pulled off a coup and entering the internet market is a large part of it. Comet jumping on the bandwagon is not a huge surprise.'

- The Monks Partnership survey of highest paid UK workers has added Mulcahey at #1.345 million per annum.