The parent company of Screwfix and B&Q has cut its full-year earnings outlook after profits dropped by a third as a result of poor sales in Europe.
Retail giant Kingfisher told investors its statutory pre-tax profit fell to £317m from £474m in the half-year to the end of July.
Like-for-like sales were also down by 2.2% over the period, with stronger trading in the Ƶ and Ireland offset by weaker consumer demand in France and Poland. The firm also said sales were impacted by unseasonably poor weather in July, which affects demand for home improvement projects.
The retail giant said on Tuesday (September 19) pre-tax profits for the year would be £590m, below a previous target of £634m.
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Chief executive Thierry Garnier said: “To better reflect our performance in [the first half] and the trading environment in our markets, we have updated our profit guidance for this year and are proactively managing our operating costs accordingly."
However Mr Garnier also said: “Our like-for-like sales in the first-half were slightly ahead of expectations, against a backdrop of unseasonal weather and ongoing macroeconomic challenges in our markets.
“We saw good growth in our Ƶ banners, with Screwfix gaining significant market share.
“At the same time, we faced strong comparatives and a weaker trading environment in Poland, while consumer confidence in France is at a 10-year low.”
He added that demand for “big-ticket” purchases, like kitchen and bathroom sales, was stronger over the period as customers moved to more indoor-based home projects.
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