Morning Mumble (Side Thought): Kingfisher Plc, was it really unpredictable

For those following ML, you'll note my commentary regarding Kingfisher (KGF) 3 months ago was spot on! It wasn't hard to work out that one cannot maintain a completely bullish environment. The KGF Q2 pre-close update for the 10 weeks to 12 July 2014 wasn't exactly endearing to the market. 

One has to question whether Screwfix is impacting on the higher margin sales via B&Q, in essence competition is reducing the margin between the group, which ironically would almost exactly explain the decline in LFL sales compared to Screwfixes increases. One wonders whether both models are sustainable with the expectation of "higher profit" margins within their "self-help" strategy.

Atb Fraser

Disc: Still short from Marh but perhaps not for long.