International electricals group Kesa will book restructuring charges of £9m and e10m (£8.8m) respectively at UK arm Comet and Spanish division Menaje Del Hogar.
However, the retailer reassured investors that full-year retail profit will be in-line with expectations and that preparations were under way to weather the year to come.
Kesa reported group like-for-likes down 7.5 per cent in the fourth quarter to April 30, bringing the full-year decline to 6.1 per cent.
Comet’s numbers were 7.3 per cent and 7.7 per cent respectively. Kesa chief executive Thierry Falque-Pierrotin said action had been taken to improve Comet’s operational efficiency. The initiatives will generate annualised cost savings of £14m.
In the light of “extremely weak trading” at Menaje Del Hogar, the business will make a higher than expected full-year loss of about e26m (£22.9m).
Numis analyst Andy Wade cut his 2009/10 forecast from £71m to £60m but moved Kesa from sell to hold because of its low valuation.
KBC Peel Hunt analyst John Stevenson said he preferred stocks with “a clearer path to recovery in EBIT margins and earnings”.