B&Q owner sees its sales decline to €3.4bn
Kingfisher, the owner of DIY chain B&Q, has reported a 1.3pc decline in like-for-like sales to £3bn (€3.4bn) in the three months to 31 October.
The result came in below Davy analyst expectations, who had predicted a 0.8pc drop in sales.
Castorama, the group’s retail chain in France, remains a problem for the company, reporting a 7.3pc decline in like-for-like sales, according to a trading update from Kingfisher. Analysts had predicted a 4.5pc drop in sales at Castorama.
In Ireland and the UK, like-for-like sales at B&Q were down 2.9pc year-on-year to £850m (€955m), while its Screwfix chain reported a 4.1pc rise in sales to £442m (€497m).
Commenting on the group’s performance, Véronique Laury, CEO of Kingfisher, said that the group was addressing the challenges it was facing.
"Our main challenge is Castorama France and we shared our action plan to fix it at the half year," Ms Laury said.
"Our action plan is now implemented for this year. We have accelerated our move to an everyday low price strategy and have launched a new marketing campaign to make it visible to our customers, however there is no quick fix."
"We are committed to our plan and to building a strong business for the long-term."
The company also confirmed that it is exiting markets in Spain, Portugal and Russia, which it said will allow it to focus better on its main markets.
The group also announced that it is returning a further £50m to shareholders via share buyback, which will complete its £600m capital return commitment in the first three years of its transformation plan.
In Ireland has B&Q stores in a number of locations including Athlone, Cork, Limerick, Galway, and Dublin.