B&Q owner Kingfisher's revenue is forecast to show an uptick when the company reports its first-half results this week, but earnings are expected to drop.
After the DIY store owner posted weak results in the first quarter, investors are now hoping a five-year revamp begins to take hold with cost-cutting and efficiency savings offsetting declines. Kingfisher's restructuring plan entails merging product ranges and IT systems.
The firm is expected to report revenue increased 4.5 per cent to £6bn in the first half, but earnings are seen dropping 20 per cent to 10.8p per share, according to Chris Beauchamp, chief market analyst at IG.
Beauchamp said Kingfisher's Screwfix division was its "saving grace" as it continues to record healthy growth. In the first quarter, like-for-like sales were up 11 per cent.
The company also noted weakness in the French market, which accounts for around two-fifths of its revenue, had continued in the second quarter in an August trading update.
In an August trading update, the company also noted weakness had continued in the French market, which accounts for around two-fifths of its revenue.
Kingfisher's share price has been heading down over the course of the year towards the company's 2014 low of 283p. They took a dip last month after the firm said 2017 would be a "challenging" year as it implemented its transformation plan.
On Friday, the firm's share price closed down 0.3 per cent at 289.03p.
Beauchamp said shares remain in a long-term range from 283p to 390p.
The company will post its first-half results on Wednesday 20 September.