Kingfisher shares sink six per cent after B&Q owner’s profit warning
B&Q owner Kingfisher has once again lowered its profit guidance for the year, down from £590m to £560m as its struggling French arm continues to whack earnings.
According to its third-quarter earnings, sales in the UK and Ireland climbed just over three per cent year-on-year to £1.5bn, while in France they slipped by eight per cent to £1bn.
The company’s share price was down over five per cent this morning as markets responded to the news.
The British multinational, which also owns Screwfix, said that the French home improvement market deteriorated far more than expected in September as a tough economic climate has led customers to scale back on renovations.
Warm weather in September and October also meant that customers put off buying new insulation in their homes, an issue which was also prevalent in its UK arm.
The firm has rolled out a number of cost-saving measures in France, but said that these will not be enough to “offset the bottom-line impact between now and the end of the financial year.”
It is the second profit warning for the group which also warned back in September that a weak economy would dismantle its earnings for the full year.
Thierry Garnier, chief executive officer, said: “As we move into 2024, we are focused on what is in our control. First, a continued focus on growing 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. We expect to see some product cost price inflation, albeit at a significantly lower level, and expect rational retail pricing and competitive price indices at all our banners.”