Kingfisher Earnings: Declining Sales of Big-Ticket Items Drive Group Revenue Lower
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.