'Challenging' market conditions hit sales, profits at Howdens

7th Nov 2024 09:17

(Sharecast News) - Howden Joinery Group warned annual profits would come in at the lower end of forecasts on Thursday, after "challenging" economic conditions and weak consumer spending dented sales.

Updating on trading, the kitchen supplier said like-for-like sales since the half year had fallen 1.9%, after a 9.4% spike in international sales was offset by a 2.2% decline at home.

Howden blamed "challenging macroeconomic conditions, with weak consumer spending further compounded by uncertainty surrounding the Budget".

As a result, it said that while annual pre-tax profits would still be within the current range of analyst forecasts, they would now most likely be at the lower end. Howden also warned that conditions were set to remain challenging into 2025.

However, it continued: "Profitability at these levels is supported by market share gains we have made and our proactive cost management programme.

"We are confident that our business model is the right one to address the opportunities in our market, and we are well placed to continue to make excellent progress over the medium-term."

Andrew Livingston, chief executive, said: "Howdens has delivered another strong period of market outperformance in continued challenging conditions, underlining the strengths of our trade-only, in-stock business model. Our strategic initiatives are performing well."

As at 0945 GMT, shares in the blue chip were down 3% at 819.5p.