The firm said sales at stores open at least a year dropped a shallower-than-expected 5.9 percent at British market leader B&Q, boosted by promotions, and were down 1 percent at French market leader Castorama.
Analysts had expected a 9 percent drop in underlying sales at B&Q, according to a company poll.
"We now enter what is anticipated to be a very challenging year in good shape with a robust balance sheet," Chief Executive Ian Cheshire said in a statement.
Analysts expect Kingfisher to report a profit before tax, goodwill and one-off items of 364 million pounds for the year ended January 31, according to Reuters Estimates, down from 386 million the year before.
Retailers of expensive and non-essential goods are struggling in a global economic recession which has been exacerbated in Britain by a plunging housing market.
Also on Thursday, British builders merchant and home improvements group Travis Perkins reported a 22.5 percent fall in annual profit.
Kingfisher shares have approximately halved in value over the past two years, but have steadied since July on hopes that its recovery plan -- a mix of cost savings and expansion in stronger markets like France and Poland -- will bear fruit.
The shares have outperformed the DJ Stoxx European retail index by 24 percent over the past year. They closed at 131.8 pence on Wednesday, valuing the business at about 3.2 billion pounds.
(Reporting by Mark Potter, Editing by James Davey and David Cowell)
Source: LONDON (Reuters)
Analysts had expected a 9 percent drop in underlying sales at B&Q, according to a company poll.
"We now enter what is anticipated to be a very challenging year in good shape with a robust balance sheet," Chief Executive Ian Cheshire said in a statement.
Analysts expect Kingfisher to report a profit before tax, goodwill and one-off items of 364 million pounds for the year ended January 31, according to Reuters Estimates, down from 386 million the year before.
Retailers of expensive and non-essential goods are struggling in a global economic recession which has been exacerbated in Britain by a plunging housing market.
Also on Thursday, British builders merchant and home improvements group Travis Perkins reported a 22.5 percent fall in annual profit.
Kingfisher shares have approximately halved in value over the past two years, but have steadied since July on hopes that its recovery plan -- a mix of cost savings and expansion in stronger markets like France and Poland -- will bear fruit.
The shares have outperformed the DJ Stoxx European retail index by 24 percent over the past year. They closed at 131.8 pence on Wednesday, valuing the business at about 3.2 billion pounds.
(Reporting by Mark Potter, Editing by James Davey and David Cowell)
Source: LONDON (Reuters)
