Kingfisher (LON:KGF) Releases Earnings Results

Kingfisher (LON:KGF) posted its quarterly earnings data on Tuesday. The home improvement retailer reported GBX 17.80 earnings per share for the quarter, Digital Look Earnings reports. Kingfisher had a net margin of 1.89% and a return on equity of 3.91%.

Here are the key takeaways from Kingfisher’s conference call:

• Kingfisher upgraded its full-year outlook, raising adjusted profit-before-tax guidance by £20 million at the midpoint to £595–£635 million and free-cash-flow guidance to £480–£520 million.
• H1 adjusted profit before tax rose 9.9% to £404 million, while adjusted EPS increased 16%; gross-margin expansion and £44 million of structural cost reductions more than offset £48 million of operating-cost inflation.
• Screwfix remained a standout performer, with UK like-for-like sales up 5.6%, supported by its rewards programme, strong customer retention and share-of-wallet gains; Screwfix France’s store like-for-like sales rose 48%, although management is prioritising profitable store economics before accelerating expansion.
• Strategic growth channels continued to scale: group trade sales excluding Screwfix grew 16%, e-commerce sales excluding Screwfix rose 16%, marketplace GMV increased 42% and retail media grew 75%; Poland and Iberia also delivered strong sales and profit growth.
• Trading conditions remained mixed, with weakness in big-ticket categories—particularly bathrooms—DIY and building-related demand affected by heatwaves, and B&Q core sales down 2.7%; management also flagged supplier price-increase requests, freight pressure and the non-repeat of some first-half benefits such as the Romania disposal contribution.

Kingfisher Stock Up 10.1%

LON KGF traded up GBX 31 during mid-day trading on Tuesday, hitting GBX 336.70. The company’s stock had a trading volume of 596,193,188 shares, compared to its average volume of 31,327,879. The company’s 50 day simple moving average is GBX 307.98 and its 200 day simple moving average is GBX 296.99. Kingfisher has a twelve month low of GBX 266.40 and a twelve month high of GBX 372.30. The company has a current ratio of 1.21, a quick ratio of 0.27 and a debt-to-equity ratio of 38.02. The firm has a market capitalization of £5.45 billion, a price-to-earnings ratio of 24.40, a PEG ratio of 2.87 and a beta of 1.13.

Wall Street Analyst Weigh In

A number of analysts have commented on KGF shares. Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 350 price target on shares of Kingfisher in a research report on Friday, July 10th. Jefferies Financial Group reissued a “hold” rating and issued a GBX 291 price objective on shares of Kingfisher in a research report on Monday, July 27th. Deutsche Bank Aktiengesellschaft reissued a “sell” rating and issued a GBX 260 price objective on shares of Kingfisher in a research note on Wednesday, May 27th. Finally, Berenberg Bank reaffirmed a “hold” rating and set a GBX 295 target price on shares of Kingfisher in a research note on Wednesday, May 27th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of GBX 306.62.

About Kingfisher

Kingfisher plc is an international home improvement company with over 1,800 stores, supported by a team of more than 70,000 colleagues. We operate in seven countries across Europe under retail banners including B&Q, Castorama, Brico Dépôt, Screwfix, TradePoint and Koçtaş. We offer home improvement products and services to consumers and trade professionals who shop in our stores and via our e-commerce channels.