Poor trading conditions have been blamed for a halving of B&Q plc’s profits during the third quarter.
The DIY retailer recorded profits of £50.3m for the period, down from £106.7m a year ago, while like-for-like sales dipped 8.4% to £952.7m.
The company said retail profit margins would fall further in the fourth quarter if current market conditions persisted.
Gerry Murphy, group chief executive of B&Q’s parent Kingfisher plc, said: “The UK retail environment continues to weaken, significantly impacting B&Q’s sales and profits.
“We have taken firm action to support sales and manage costs and to ensure that B&Q is well placed for market recovery.”
During the quarter B&Q lowered prices for customers across a range of products and held 10% off and “Big Project” weekends, which it said were successful in attracting more customers into stores, driving market share and reducing overall stock levels.
But gross margins were 2% lower on a year ago due to the price reductions, promotional activity and stock clearance.
Eighteen of the 22 store closures announced in September will be completed during the fourth quarter, with the remainder taking place next year.
