Kingfisher Plc issued a profit warning after shoppers in Poland reined in spending and consumer confidence in France hit a 10-year low, pulling down the first-half performance of the home improvement group.
(Bloomberg) — Kingfisher Plc issued a profit warning after shoppers in Poland reined in spending and consumer confidence in France hit a 10-year low, pulling down the first-half performance of the home improvement group.
The owner of B&Q in the UK and Castorama in France now expects its pretax profit this fiscal year to be around £590 million ($730 million), down from its previous guidance of around £634 million.
Kingfisher stock fell more than 6% in early trading in London Tuesday.
The company, which also owns the Screwfix chain catering to professional builders, said a combination of “unseasonal weather and ongoing macroeconomic challenges” had hurt its first-half performance.
Kingfisher had previously been a lockdown winner as people stuck at home spent money fixing up their homes and buying garden furniture. However, as a cost-of-living crisis has hit large parts of Europe, conditions have become more competitive. Kingfisher said like-for-like sales fell 10.9% in Poland and 3.8% in France in the first half.
Comparables sales in the UK and Ireland were more resilient, rising 1.7% even as homeowners battle higher mortgage rates.
Chief Executive Officer Thierry Garnier is leading a turnaround of Kingfisher — the latest of several for the company — and is focused on being more price competitive, reducing costs and boosting online sales.
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