B&Q owner warns of tough outlook

B&Q stores are being revamped

Kingfisher, the owner of the B&Q DIY chain, has reported higher half-year sales and profits, but says trading in the next few months could be difficult.

The firm, which also owns French chain Castorama, said half-year profits rose 6.2% to £189.6m ($382.3m).

Total sales across the Kingfisher group increased by 9.8% to £4.8bn.

However, the firm said recent interest rate rises and turmoil on the financial markets meant that the second half of the year was expected to be "tough".

B&Q makeover

Kingfisher said its redevelopment programme for its B&Q stores was going well.

We expect the second half to be tough as recent interest rate rises and current uncertainty in financial markets affect customer behaviour Gerry Murphy, Kingfisher chief executive See Kingfisher's share price

The company has been revamping the stores to devote more space to displays of kitchens and bathrooms.

The firm will also be introducing upmarket lines of home furnishings and is changing its advertising slogan from "You can do it" to "Let's do it", in an attempt to attract more customers.

At the three new large-format B&Q stores that have been open for more than a year, sales had grown by about 30%, the firm said.

B&Q as a whole saw sales rise 5%, but its profits fell by £4.8m to £77.8m as a result of the firm investing £15.8m into its stores.

In July, Kingfisher had warned that sales at B&Q had been hit by the wet weather over the summer, and last week, rival Home Retail Group said trading had been tough at its Homebase DIY chain.

"In the UK, all our businesses delivered sales growth in a market which remains relatively weak," said Kingfisher chief executive Gerry Murphy.

"We expect the second half to be tough as recent interest rate rises and current uncertainty in financial markets affect customer behaviour."