Kingfisher (LON: KGF ) Plc, a leading home improvement group, has revised its profit forecast for the current financial year due to a challenging economic landscape in key European markets. The company now expects a pretax profit of around £590 million ($730 million), a significant reduction from its previous projection of approximately £634 million.
The downward adjustment comes in the wake of a tough first half of the year, marked by reduced consumer spending in Poland and a decade-low consumer confidence in France. These factors have collectively impacted the performance of Kingfisher, prompting it to issue this profit warning.
Kingfisher operates B&Q in the UK and Castorama in France, and both these markets have been affected by changing economic conditions. In Poland, consumers have become more frugal, while French consumer confidence has dropped to its lowest point in ten years. These developments have had a direct impact on Kingfisher's first-half performance.
This profit warning from Kingfisher underscores the challenges faced by retailers operating in volatile economic environments. It also highlights the importance of consumer confidence and spending patterns as key determinants of business performance.
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