B&Q owner Kingfisher has warned over a cautious outlook in the UK and France as profits took a hit from efforts to overhaul the business.
The group said adjusted pre-tax profits fell 5.7% to £394 million in the six months to the end of July, as it faced £46 million in costs linked to its transformation plans.
Kingfisher, which also owns DIY chain Screwfix, said it had to grapple with "business disruption" as the roll-out of a new IT system put some operations under strain.
It said the upheaval, coupled with a weaker performance in France, had knocked around 2% off like-for-like sales, which fell by 1.3% over the period.
However, shares soared more than 6% in morning trading after underlying pre-tax profits beat expectations, rising 0.9% to £440 million.
Chief executive Veronique Laury said: "Looking across our markets, we have seen solid growth at Screwfix and Poland, offset by continued weaker sales in France and some business disruption, principally reflecting product availability and clearance.
"We are aware of and are acting on the causes of this disruption, which we are confident will ease.
"For the full year, we have self-help plans in place to support our overall performance and remain comfortable with full-year profit expectations, though we remain cautious on the second half backdrop in the UK and France."
Group sales lifted 4.5% to more than £6 billion, but sales across the UK and Ireland dropped 0.4% to £2.6 billion in response to B&Q store closures and transformation pressures.
Total UK sales at B&Q were down 6.3% to £1.9 billion over the period, with like-for-like sales falling 2.3%.
Screwfix helped offset the pressure with another strong performance, as half-year sales leapt 18.7% to £727 million after it launched 16 new stores, bringing its total to 533.
UK retail profit pushed marginally higher, up 1.7% to £215 million for the half-year.
In France, sales dropped 4.1% to £2.3 billion, and were down 4.6% on a like-for-like basis, as it struggled with a sluggish performance compared to the wider market.
However, sales in Poland climbed 5.7% to £694 million for the six months to the end of July.
The retail group said its five-year transformation plan, which aims to deliver a £500 million profit boost by the end of 2020/21, was on track.
George Salmon, equity analyst at Hargreaves Lansdown, said: "After last month's update, we already knew first-half trading was disappointing.
"Instead, the main focus going into these results was the group's transformation plans, and progress here provided some much-needed good news.
"Cost savings are being generated at a decent lick, and it's reassuring that the group is still confident of hitting its five-year targets.
"Screwfix remains a bright spot, but like-for-like sales at the group's flagship stores on both sides of the Channel fell over the period.
"While Kingfisher remains cautious on its prospects for the second half, the group expects to see recent operational disruption fade away.
"Its new ranges are being well-received by customers too, which give us some optimism the group could be over the hump."
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