Shares in Kingfisher (KGFHY) , Europe's largest home improvement retailer, slipped Tuesday after a poor performance in France held back third-quarter revenue.
The retailer, which operates as B&Q and Screwfix in Britain and Castorama and Brico Deport in France, said group sales rose 1.8% on constant currency in the three months to Oct. 31. Group sales had risen by 3% in the previous quarter.
Same-store sales were up 5.8% in the U.K and Ireland but fell 3.6% in France.
Analysts say Kingfisher could experience headwinds soon due to a weakening U.K. housing market and political uncertainty in France.
Kingfisher shares were down 2% in early trading on Tuesday, but have gained more than 12% since the beginning of the year.
Sales were down 3.6% at B&Q as store closures continue but Screwfix sales were up 23.1%, driven by its online channel In France, Castorama sales were down 3.7% and Brico Depot lost 1.2%.
"We continue to make good progress on our strategic milestones in the first year of our five year ONE Kingfisher transformation, and remain on track. In addition, we are gearing up for next year when the level of transformation activity will significantly increase," CEO Véronique Laury said in a statement.
Laury in January outlined a five-year transformation strategy aimed at boosting the retailer's annual profit by £500 million ($624.5 million) from 2021 at a cost of £800 million. The plan involves unifying product offering across the business, improving online shopping and cutting costs.