Shares in Kingfisher slumped on Tuesday after the DIY retail group forecast small earnings growth this year at best and warned of the impact of budgetary measures in the UK and France on consumer sentiment and costs in the short term.
The company, which owns B&Q and Screwfix in the UK along with Brico Depot and Castorama in France, posted a 7% fall in adjusted pre-tax profit to £528m and announced a £300m share buyback.
It expects expected adjusted earnings of £480m to £540m for the 2025/26 fiscal year. Shares in the firm were down 10% in early London trade.
"Looking to the year ahead, the recent government budgets in the UK and France have raised costs for retailers and impacted consumer sentiment in the near term," said chief executive Thierry Garnier.
"With this in mind, we remain focused on what is in our control - progressing our strategic objectives at pace to deliver further market share gains, and continuing to manage gross margin, costs and cash effectively."
Reporting by Frank Prenesti for Sharecast.com