French homeowners downed tools in the third quarter and weakened profits at the home retailer Kingfisher – an embarrassment for new boss Véronique Laury in her home market.
Castorama and Brico Dépôt, Kingfisher’s flagship French stores, were hit by the country’s stuttering economy, which grew by just 0.3 per cent in the three months to the end of October.
Stronger sales at Kingfisher’s B&Q and Screwfix chains cushioned the fall, but overall profits at the FTSE 100 group fell 6.6 per cent to £223m.
“Trading conditions have followed a similar trend to the first half of the year, reflecting the more encouraging macroeconomic backdrop in the UK – offset by a softer market in France,” said Ms Laury, who stepped up to become chief executive last year.
French profits declined 15.7 per cent, or 7.5 per cent stripping out the effects of the weak euro, in the quarter. UK profits were up 14.2 per cent. Overall group sales were 2.5 per cent lower at £2.65bn, including currency movements.
In the UK, Screwfix grew sales by nearly a quarter after opening 13 new stores and receiving a boost from busier tradesmen needing materials for an increased workload.
The DIY and garden centres specialist B&Q also benefited from strong sales of outdoor and building products, which rose 6.3 per cent.
Ms Laury announced plans in March to shrink the number of B&Q stores in the UK and Ireland by around 15 per cent over the next two years, with the closure of up to 60 shops, which will affect about 3,000 jobs. The move will cost it about £350m.
Kingfisher is also in talks with other retailers about subletting space in its stores.
Its shares fell 3p to 342.1p.
