Kingfisher benefitted from the warmer weather in its second quarter as like-for-likes jumped 2.5%. Retail Week takes a look at what the analysts say.

Kingfisher is being proactive in its response to weakness across its core DIY categories, which continue to struggle amid weakness in the housing market and generally low consumer interest. To this end, B&Q is gaining market share off the back of investment in stores, a focus on value and the continued development of ranges and services. Moreover, a recent deal with Morrisons to share space in Meir Park, Staffordshire, reflects an understanding of the long term necessity to reduce space in response to structural changes and overcapacity in the UK DIY category.

Kingfisher faces a number of challenges to overcome in the medium-long term. Most notably, until the housing market improves significantly, consumer interest in DIY will remain weak.  Linked to this, while the ultimate potential of the coalition Government’s Help To Buy scheme remains uncertain, the early signs have been promising. Indeed, we do believe the DIY market will eventually reach a stable and settled level towards the back end of next year. In relation to Kingfisher itself, we retain our view that while it is a victim of circumstance the company is both well run and proactive. Investments in stores, a focus on value and the continued development of ranges and services put it in a strong position to grab share and take advantage of the upturn, when eventually materialises - Andrew Hall, Conlumino

In contrast to Carpetright yesterday, Kingfisher celebrated the arrival of summer in its Q2 pre-close update today for the short 10 week period to July 13th. Having seen its outdoor/seasonal ranges suffer in Q1 from the cold spring weather, the warmer weather in Q2 helped B&Q in the UK swing back into positive LFL sales territory. The market was still expecting the other key markets of France and Poland to be down by -1%/2% LFL, but France was up by 1.1%, helped by some calendar timing benefits. Sales in Poland were up 3.6% LFL, benefiting from the pricing reinvestment over the last year and from 8% growth in seasonal products - Nick Bubb, independent analyst

Overall this is a much better result than the Q1 period which was adversely impacted by weather and calendar effects, and is slightly better than market expectations in France. Although there is no specific update on margin performance they say they have been focusing hard on self-help margin and cost initiatives. Although consumer confidence in its key markets remains depressed there are some chinks of light on the horizon for KGF compared to the last 12 months ranging from weather, through currency, to UK housing activity, Eire (post examinership) and Germany (likely capacity withdrawal). In France the government is trying to drive increased house starts which is a key driver for Brico Depot. On the back of a comprehensive self-help plan (Creating The Leader) they remain confident in future prospects. The recent rally (3mths, +27%) which has seen the rating almost back up to the sector average looks well justified - Matthew McEachran, N+1 Singer