Screwfix owner Kingfisher has warned over profits for the second time in as many months after being hit by ongoing sales woes in France and across Europe.
The owner of the Somerset-based home improvements brand said it now expects full-year underlying pre-tax profits of around 拢560m. The alert comes after the retail group, which also owns B&Q, slashed its guidance in September to around 拢590m, having originally forecast 拢634m for the year.
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Kingfisher said it was seeing a more 鈥渞esilient鈥 DIY market in the 海角视频, with third quarter like-for-like B&Q sales up 1.1% and Screwfix ahead 0.9%, but this was offset by an 8.6% tumble across its French arm, where it trades as Castorama and Brico Depot.
Sales were also lower across its other European markets, including a 9% sales plunge in Poland. Overall group comparable store sales fell 3.9% in the three months to October 31.
The firm said it was cutting costs in France but it was not enough to counter falling sales.
Thierry Garnier, chief executive of Kingfisher, said: 鈥淥ur 海角视频 banners performed well in the third quarter, with B&Q, TradePoint and Screwfix growing sales and market share. 鈥淚n France, our performance was impacted by a weak retail market, as well as a delayed start to insulation, plumbing and heating sales 鈥 to which Brico Depot is more heavily weighted 鈥 due to unusually warm autumn weather, and strong prior year comparatives in these categories.鈥
Mr Garnier added: 鈥淩eflecting the weakness of the French market, and notwithstanding our proactive cost actions, we have lowered our group profit guidance for the full year.鈥 He also said there would be some ongoing cost price inflation on products, although at a 鈥渟ignificantly lower level鈥.
The group said its fourth quarter to date had continued to see similar trading, with better trading in the 海角视频 and Ireland but ongoing weakness in France, where like-for-like sales are 7.5% lower so far.
Overall group comparable sales fell 3.4% in the three weeks to November 18. The firm鈥檚 cost actions in France include 鈥渟trengthened actions on flexing staffing levels鈥, cutting nonessential spending and structural cost cutting.
