The owner of DIY chain B&Q revealed a fall in half-year profits, but insisted its turnaround was on track and unveiled plans to ramp up expansion of its Screwfix building supplies arm.
Kingfisher posted a 2.3% fall in underlying pre-tax profits to £384 million for the six months to August 1 as it took a currency hit and saw comparable store sales for its B&Q arm flag, edging 0.7% higher after a disappointing performance for outdoor seasonal goods in the peak summer season.
But its trade-focused Screwfix business continued to power ahead, with like-for-like sales leaping 16.5% higher thanks to a buoyant housebuilding sector.
Recently-appointed chief executive Veronique Laury, who took over from Sir Ian Cheshire in December, now aims to add nearly 200 outlets to the Screwfix chain, boosting it from 412 to around 600 as part of a group-wide overhaul.
But she has already announced some "sharp" decisions affecting the B&Q business, including closing as many as 60 B&Q stores over the next two years, affecting around 3,000 jobs in the UK and Ireland.
There has also been speculation that the group might phase out the B&Q brand name.
Other plans include cutting back on some of the 393,000 products sold across the company, particularly as only 7,000 items - amounting to 7% of sales - are sold in at least two of Kingfisher's operating companies.
Ms Laury said the group had been working "at pace" on the revamp.
She said: "I am pleased that we have delivered a solid first half of the year and have made good early progress with our 'One' Kingfisher plan."
"There remains a lot to be done however," she added.
Ms Laury denied rumours the group might axe the B&Q brand, confirming there were no plans currently to change the chain's name.
The group also revealed its expected bill from the introduction of the living wage in April, saying it will cost the group around £5 million next year.
A raft of retailers have recently warned over the impact of the move, which will see workers aged 25 and over paid £7.20 an hour from next April, rising to £9 from 2020.
Next and Whitbread, which owns Costa Coffee and Premier Inn, last week cautioned they may need to hike prices to offset the higher wage bills from the living wage.
But Kingfisher said the cost to the group would not be "so significant", as a large part of its business is based outside the UK.
Its half-year figures showed the Screwfix performance helped overall UK and Ireland sales rise 3.3% on a like-for-like basis, while retail profits for the division jumped 16.8% to £194 million.
Kingfisher's French chains Castorama and Brico Depot suffered more tough trading as profits in France fell 16.4%, or 5.7% with currency effects stripped out, weighing on overall group results.
The strong pound also impacted interim group profits by £29 million.
Kingfisher said the French business was battling against ongoing weak consumer confidence and a declining housing and construction market.
The group added: "Whilst we remain encouraged by the macroeconomic backdrop in the UK, we remain cautious on the outlook for France."
Kingfisher is closing two stores in France and one in Russia.
It is trialling the Screwfix brand in Germany and said it had been "well received" so far, with plans to add another five outlets this year, taking the total to nine.
Kingfisher confirmed that most of the 30 of the B&Q store closures planned for this year would take place over the second half.
B&Q's new boss, Michael Loeve, took on the role at the beginning of the month, joining from Coop Danmark - one of Denmark's biggest retailers with around 1,200 stores, where he was group retail director.
He replaced Kevin O'Byrne, who left in May.
Ms Laury said her new management team was now complete after a shake-up that saw a number of changes in senior staff across its businesses.
Shares in the FTSE 100 company fell 3% after the profits fall and the company's gloomy outlook on its French operation.
Retail analyst Kate Calvert at Investec said the update on Kingfisher's overhaul showed the new chief executive was "getting stuck in", but said the results showed European economic woes were continuing to impact figures.
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