Kingfisher owner B&Q has lowered its profit guidance for the year to £590m down from £634m as the home improvements retailer continues to be battered by a tough economic climate.
According to its half year results, operating profits for the group sank 30.9 per cent to £367m and gross profit dipped one per cent to £2.49bn.
The British multinational, which also owns Screwfix, said that in its UK and Ireland trade proved resilient with like-for-like sales up 1.7 per cent.
However, in its Polish and French arm sales on a like-for-like basis fell 10.9 per cent and 3.8 per cent respectively due to stronger comparatives and weaker consumer confidence in the regions.
The company’s share price tumbled over six per cent this morning as markets responded to the news.
Thierry Garnier, chief executive officer, said:“Our like-for-like sales in H1 were slightly ahead of expectations, against a backdrop of unseasonal weather and ongoing macroeconomic challenges in our markets.
“We saw good growth in our UK banners, with Screwfix gaining significant market share.”
He added: “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.
“Overall, demand for our core and ‘big-ticket’ categories was healthy, and we were pleased to see an improving volume trend in these categories through the half.”