B&Q profit slump hits Kingfisher

B&Q has had to cut prices to attract shoppers

Profits at UK DIY chain B&Q have more than halved after it cut prices during autumn in a bid to shift stock.

Retail profit at B&Q was £50.3m for the 13 weeks to 29 October, down from £106.7m in the same period last year.

The fall dragged profits at B&Q's parent firm Kingfisher down 21% to £157.1m for the quarter.

"The UK retail environment continues to weaken, significantly impacting B&Q's sales and profits," said Kingfisher's chief executive Gerry Murphy.

'Weaker demand'

B&Q's total sales were down 3.9% to £952.7m, while like-for-like sales - which strip out the effects of store openings and closures - fell 8.4%.

I don't anticipate a return to a more buoyant market anytime soon Kingfisher boss Gerry Murphy Check the Kingfisher share price

Gross margins at B&Q were down two percentage points, reflecting "price reductions, promotional activity and stock clearance," Kingfisher said.

The company added that if current market conditions continue, "retail profit margin will fall further in the fourth quarter".

"Continued weakening consumer demand for housing-related products, together with widespread price promotion and rising costs, is seriously impacting UK retail performance," Mr Murphy said.

He added that the difficult trading conditions showed no sign of abating.

"I don't anticipate a return to a more buoyant market anytime soon," said Mr Murphy.