Kingfisher Earnings: Disappointing Results Send Shares Lower; Maintain Fair Value Estimate

No-moat Kingfisher reported a disappointing set of full-year results for the period ended Jan. 31 with revenue and earnings under pressure from a weak consumer backdrop and rising costs—particularly in France. Adjusted pretax profit declined 7% to GBP 528 million, buoyed somewhat by a one-off GBP 33 million business rates refund at B&Q. On a statutory basis, profit before tax dropped 35%, underscoring the hit from restructuring and weak consumer sentiment. Shares are down by about 12% at the time of writing and trading at a slight discount to our GBX 267 (ADR: $6.70) fair value estimates, which we reduced after the disappointing update in November 2024.