B&Q owner Kingfisher has lowered its full-year profit guidance as weak sales in France took its toll on the bottom line.
Despite UK sales growing 3.3% in the third quarter to 31 October, a 8.7% revenue plunge in France hit its profit forecast, which was lowered from £590m to £560m for the year.
Total group sales dipped 2.1% over the quarter to £3.2bn, with like-for-likes down 3.9%. The trend has continued into its final quarter of the year with sales down 3.4% in the three weeks to 18 November.
The retailer said it was taking “decisive cost action” in France, however it expected the trend to continue for the rest of the year.
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It said the UK market was resilient as B&Q sales rose 1% – 1.1% on a like-for-like basis – with ecommerce sales soaring 31.8% driven by the scaling of its marketplace.
Screwfix sales jumped 6.8% – or 0.9% on a like-for-like basis with “robust demand” from trade customers.
Kingfisher CEO Thierry Garnier said: “As we move into 2024, we are focused on what is in our control.
“First, a continued focus ongrowing market share in the UK, France and Poland with delivery of our strategic growth initiatives.
“Second, driving productivity gains to offset wage inflation. And finally, delivering on our free cash flow and shareholder returns targets.”
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