Company Reports

Kingfisher reported fiscal first-half results broadly ahead of company-compiled consensus expectations and raised its full-year guidance for adjusted profit before tax by 3.3% at the midpoint. Growth in Screwfix, Poland, and Iberia more than offset weaker B&Q and French sales.

Kingfisher is a home improvement company with over 1,700 stores in seven countries across Europe under retail banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtaş. It is the second-largest do-it-yourself retailer in Europe with a leading position in the UK and a number-two position in France, which together account for 81% of sales.

Kingfisher reported first-quarter trading update broadly in line with our expectations and maintained fiscal year guidance for adjusted profit-before-tax in the range of GBP 565-GBP 625 million, and free cash flow in the range of GBP 450 million-GBP 510 million.

Kingfisher is a home improvement company with over 1,900 stores in seven countries across Europe under retail banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtaş. It is the second-largest do-it-yourself retailer in Europe with a leading position in the UK and a number-two position in France, which together account for 81% of sales.

Kingfisher reported fiscal 2026 results that broadly met company-compiled consensus estimates. We had forecast slightly lower sales growth, but a lower operating margin and higher adjustments meant adjusted EPS came in line with our expectations.

Kingfisher reported a trading update for the period to Oct 31. Overall, this was a good set of results. The UK and Ireland region continued to surprise positively, but hints of a softening labor market and uncertainty with regard to the autumn budget keep us wary.

Kingfisher is a home improvement company with over 1,900 stores in seven countries across Europe under retail banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koçtaş. It is the second-largest do-it-yourself retailer in Europe with a leading position in the UK and a number-two position in France, which together account for 81% of sales.

Kingfishers’ first-half fiscal 2026 results came in well ahead of company-compiled expectations, and PBT guidance was raised to the upper end of the previously guided range, sending shares up 17.5% in early Sept. 23 trading.

Kingfisher is a home improvement company with over 1,900 stores in seven countries across Europe under retail banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint, and Koctas. It is the second-largest do-it-yourself retailer in Europe, with a leading position in the UK and a number-two position in France, which together account for 81% of sales.

We’re transferring coverage of Kingfisher, Europe’s second-largest do-it-yourself retailer.

Kingfisher is a leading home improvement retailer operating under the retail banners of B&Q and Screwfix in the UK and Brico Depot and Castorama in France, while also having a presence in other European markets. Kingfisher has attempted multiple strategies to optimize its product offering and leverage its leading position in the French and British home improvement markets, with little success in delivering excess economic returns.

Kingfisher’s underlying like-for-like sales rose 2.7% in the first quarter, beating expectations thanks to warm spring weather in the UK. Despite this strong start, the company didn’t raise its full-year profit forecast.

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.

No-moat Kingfisher reported a disappointing third-quarter trading update. Organic revenue declined 1.1% year over year, missing company-compiled consensus. To make matters worse, proposed regulations in the UK and France are expected to hit profitability in 2025 due to higher wage costs and taxes. The combination of bad news sent shares 15% lower on Nov. 25. We’ve lowered our fair value estimate by 8% to GBX 267 per share to reflect lower profitability in the short- and medium term. Shares appear fairly valued.

Kingfisher is a leading home improvement retailer operating under the retail banners of B&Q and Screwfix in the UK and Brico Depot and Castorama in France, while also expanding in other European markets. Kingfisher has attempted multiple strategies to optimize its product offering and leverage its leading position in the French and British home improvement market with little success delivering excess economic returns.

Shares in no-moat Kingfisher are trading 7% higher intraday, following better-than-expected first-half earnings and an upgrade in its profit-before-tax and free cash flow guidance. Management has done a commendable job of keeping costs in check despite a 2% decline in first-half organic sales, including a 0.6% positive impact from more trading days. Sales of big-ticket items and seasonal products, collectively accounting for 36% of group sales, fell 7% and 3%, respectively. Following a lot of pessimism that was baked into the share price at the start of the year, we now believe the stock is reasonably valued to our GBX 290 fair value estimate, which we maintain.

No-moat Kingfisher reported a 1% decline in first-quarter sales, which included a 2% favorable impact from more trading days year over year, likely the driver behind its outperformance against company-compiled consensus. Sales during the first three weeks of the second quarter are down 2.5%, tracking in line with our full-year expectations. Shares screen as marginally undervalued to our GBX 290 fair value estimate. However, we suggest a greater margin of safety before buying the stock.

No-moat Kingfisher reported a 25% decline in profit before tax and has guided for a further 8% decline at the midpoint in fiscal 2025. The company has faced a perfect storm driven by weak demand for home improvement activity, due to higher interest rates, which has required promotional activity to drive sales, with persistent labor and energy inflation adding to its challenges. We anticipate Kingfisher can overcome its short-term headwinds through further space-optimization in France and improving sales trends in Poland, which will support operating leverage. We maintain our GBP 2.80 fair value estimate and view shares as marginally undervalued.

Kingfisher is a leading home improvement retailer operating under the retail banners of B&Q and Screwfix in the U.K and Brico Depot and Castorama in France, while also expanding in other European markets. Kingfisher has attempted multiple strategies to optimize its product offering and leverage its leading position in the French and British home improvement market with little success delivering excess economic returns.

No-moat Kingfisher reported a 4% decline in organic sales during the third quarter, notably lower than company-compiled consensus of negative 2%. Its French businesses were the main cause for the weak performance, seeing the top line fall 9%, partly explained by an unfavorable product mix, which was not geared for the unusually warmer weather during the quarter. Full-year profit-before-tax guidance was lowered to GBP 560 million from GBP 590 million, having been downgraded from GBP 630 million during the previous quarter. Its second profit warning in as many quarters highlights the weak macroeconomic environment in Europe and that demand continues to normalize, having benefited significantly during the coronavirus pandemic and thus we don't anticipate a meaningful recovery in the short term. Investor confidence in the business has declined with shares trading 6% lower. We maintain our GBP 2.90 fair value estimate and view shares as undervalued at current levels.