LONDON, May 30 (Reuters) - Kingfisher, Europe'slargest DIY retailer, posted a near-30 percent drop in firstquarter profit as weak demand and poor weather continued to hittrade in its key markets.
The group, which runs B&Q and Screwfix in the UK andCastorama and Brico Depot in France, on Thursday said retailprofit was 114 million pounds ($172 million) in the 13 weeks toMay 4, down 29.2 percent on a year ago and well below a companycompiled consensus forecast of 137 million pounds.
Revenue was 2.6 billion pounds, down 4.2 percent on a likefor like basis, and deteriorating from a 3.4 percent fall in thefinal quarter of last year.
Like-for-like sales fell 5.6 percent in France and 4.7percent in UK and Ireland, but rose 0.7 percent in its smaller'other international' arm, led by growth in China and Russia.
Kingfisher is suffering along with other European retailersfrom cash-strapped customers holding off buying "big ticket"items like kitchens and bathrooms.
Continued poor weather across Europe added to its woes,particularly in March, accounting for much of its first-quarterprofit fall. However the firm said more normal weather at theend of the period had heralded an improved performance.
Chief Executive Ian Cheshire said it would focus hard onmargin and cost initiatives to help ease tough conditions, suchas through buying more goods centrally from cheapermanufacturing centres like China.
Its operating margin was 4.3 percent, down from 6 percent ayear earlier.
The group struggled in its two biggest markets. B&Q'slike-for-like sales fell 5.6 percent in the first quarter, worsethan analysts' consensus forecast of down between 2 and 3percent.
In France like-for-like sales fell 4.1 percent at Castoramaand 7.3 percent at Brico Depot, broadly in range with respectiveconsensus forecasts of 4-5 percent and 5-7 percent declines.
Shares in the firm closed at 327.8 pence on Wednesday,valuing the firm at around 7.7 billion pounds.
Kingfisher (KGF)
