Home improvement retail group Kingfisher (LON:KGF) reported a weaker-than-expected set of first quarter results, with flagging international demand offsetting a stronger performance in the UK.
For the Kingfisher group as a whole, sales dropped 0.6 percent in stores that had been open a year or more in the three months to the 30th April. The negative figure was driven by a 5 percent drop in sales in France, where it runs the Castorama and Brico Depot home improvement chains.
Total sales in the UK up 1.4 percent, with its Screwfix business in particular seeing a 12.6 percent surge in sales. However, this was partially countered by a 4.6 percent drop in sales at B&Q sales.
Chief Executive Officer Véronique Laury, who implemented a five year turnaround plan in January 2016, said:
“We have set ourselves up well for our transformation, which continues in line with our plans. Strong performance in Screwfix and Poland continues, though performance in France remains weak. In addition, we are experiencing some business disruption given the volume of change, as we clear old ranges, remerchandise new ranges and continue the roll out of our unified IT platform.
“We remain confident in the size of the prize and our ability to deliver our long term plan, both the financial benefits of the transformation and the benefits to customers, supported by the continued expertise and energy of our colleagues.”
Shares in Kingfisher fell nearly 7 percent in early morning trading, currently down 6.77 percent at 334.90 (0849GMT).