Kingfisher (LON:KGF) Posts Earnings Results

Kingfisher (LON:KGF) announced its earnings results on Tuesday. The home improvement retailer reported GBX 17.80 EPS 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 0.3%

LON:KGF traded up GBX 1.06 during mid-day trading on Wednesday, reaching GBX 344.76. The stock had a trading volume of 941,256,563 shares, compared to its average volume of 33,099,301. The company has a market capitalization of £5.58 billion, a price-to-earnings ratio of 24.98, a price-to-earnings-growth ratio of 2.87 and a beta of 1.13. The stock’s 50 day simple moving average is GBX 309.17 and its two-hundred day simple moving average is GBX 296.93. The company has a debt-to-equity ratio of 38.02, a current ratio of 1.21 and a quick ratio of 0.27. Kingfisher has a 1-year low of GBX 266.40 and a 1-year high of GBX 372.30.

Analyst Ratings Changes

Several analysts recently issued reports on KGF shares. Jefferies Financial Group reissued a “hold” rating and set a GBX 291 target price on shares of Kingfisher in a research note on Monday, July 27th. Berenberg Bank upped their target price on shares of Kingfisher from GBX 295 to GBX 320 and gave the stock a “hold” rating in a research report on Wednesday. Royal Bank Of Canada reiterated an “outperform” rating and issued a GBX 350 price target on shares of Kingfisher in a research note on Friday, July 10th. Finally, Deutsche Bank Aktiengesellschaft reiterated a “sell” rating and issued a GBX 260 target price on shares of Kingfisher in a research report on Wednesday, May 27th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of GBX 306.71.

Key Kingfisher News

Here are the key news stories impacting Kingfisher this week:

• Positive Sentiment: Upgraded profit outlook: Kingfisher raised its annual profit guidance after first-half adjusted pretax profit increased 9.9% to £404 million, indicating stronger-than-expected trading momentum. Reuters report on Kingfisher’s raised outlook
• Positive Sentiment: Screwfix offsets B&Q weakness: Robust demand at Screwfix helped compensate for weaker results at B&Q, supporting the group’s earnings growth and upgraded guidance. Analysis of Kingfisher’s profit guidance
• Positive Sentiment: Share buyback underway: Kingfisher plans to begin the third tranche of a £50 million buyback this week. Repurchases can support earnings per share and signal that management views the stock as attractively valued, although one report contained an inconsistent zero-share authorization figure. RTT News report on Kingfisher’s buyback
• Positive Sentiment: Positive market reaction: The shares rose sharply ahead of the open as investors responded to the stronger first-half results and improved outlook. Report on Kingfisher’s pre-market rise

Kingfisher announced that its Board of Directors has authorized a share repurchase program on Tuesday, September 22nd that allows the company to buyback 0 shares. This buyback authorization allows the home improvement retailer to repurchase shares of its stock through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Kingfisher Company Profile

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.