Wet summer damps Kingfisher profits Kingfisher, owner of the B&Q home improvement chain, blamed a rain-soaked summer, unhelpful foreign exchange rates and dismal economic conditions for missing analysts" interim pre-tax profit expectations. The pan-European retailer said on Wednesday that the UK and northern Europe's soggy summer had kept shoppers away from its stores, with average footfall down as much as a fifth during the most severely affected weeks. Kingfisher said the wet summer had cost the group some £30m in first-half operating profit, as sales of outdoor seasonal items, such as barbecues and garden furniture and building products, shrank. "Retailers will always tend to complain about wet weather," said Ian Cheshire, Kingfisher chief executive, calling the summer "the wettest in 100 years." He added that the weather "took at least £30m from the profit and loss sheet, not least because of markdowns and further promotional efforts to clear stock." Kingfisher, which operates almost 1,000 stores across eight countries in Europe and Asia, said conditions were similarly unyielding on the continent, where the group trades under brands including Castorama and Brico Dépôt. The FTSE 100 company also has a 50 per cent joint venture in Turkey with Koc Group and a 21 per cent interest in Hornbach, the German DIY retailer. Kingfisher's interim like-for-like sales in the UK and Ireland fell 5.5 per cent year on year to £2.3bn in the six months to July 28 compared with the year before, and contracted 0.6 per cent to £2.2bn in France. "Despite downgrades in recent weeks, interim results to the end of July are disappointing and at the bottom end of market expectations," said Freddie George at Seymour Pierce, who cut his recommendation on Kingfisher stock from "hold" to "sell." He added: "Some of the problems are one-off, but one worries that some are also structural. The company's two core markets, UK and France, are mature, and in both these markets the company has too much space, which is likely to be cannibalised by the internet. One bright spot for Kingfisher was Screwfix, its UK trade tools, plumbing and electrical equipment supplier, which reported an 8.9 per cent year-on-year rise in sales to £273m. Like-for-like sales in Poland contracted 4.1 per cent to £513m in the first half, weighed down by further inflationary pressures affecting consumers, and weakness of the zloty. Group interim pre-tax profit fell from £438m last year to £364m, on revenues down 3.3 per cent to £5.5bn. Diluted earnings per share fell from 13.5p to 10.9p, and an interim dividend of 3.09p was proposed, up from 2.47p a year ago. On an underlying basis, profit before tax and one-off items of £371m missed analysts" consensus forecasts £380m to £400m. Kingfisher shares edged down 0.7 per cent to 270.3p in early London trading.