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.

The company also announced a £600 million share buyback that will take place over three years. To date it has bought back £182 million.

Analysts from Jefferies wrote Tuesday that the outlook for the company looks more challenged as the consumer demand is expected to decrease. "In the UK lead indicators for housing activity have clearly softened (with mortgage approvals falling 5% in calendar Q3, having increased by 14% in H1). Screwfix's skew to small traders makes the business particularly susceptible to cyclical shifts, even if we would expect the format to remain a strong market share winner under more challenged demand conditions," the analysts said.

The French presidential election in April and May next year is making for an uncertain trading environment. "In France a highly uncertain political outlook should prove a continued dampener on demand, making a major improvement in trading performance unlikely until late in 2017," the analysts said.

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