Shares in Kingfisher, the owner of DIY chain B&Q, fell sharply on Thursday after the company reported quarterly profits that fell short of analyst expectations. The retailer posted a 20.3% rise in retail profit for the three months to 3 May, reaching £142 million, while analysts had forecast £145 million.
Chief executive Sir Ian Cheshire attributed the year-on-year sales increase to a 'big bounce' from improved weather compared to spring 2013. He noted a 'more confident customer' and an uptick in activity, but the slight miss on profit targets weighed on investor sentiment.
The decline in Kingfisher's share price also came amid a warning from the Organisation for Economic Co-operation and Development (OECD) on the UK economy. The OECD cautioned that the UK's economic recovery could be at risk if interest rates rise too quickly, adding to market jitters.
Kingfisher's results were released on the same day as the OECD's UK warning, compounding pressure on the stock. The company's shares were among the biggest fallers on the FTSE 100 index.
