Kingfisher (LON:KGF) Announces Quarterly Earnings Results

Kingfisher (LON:KGF) issued its earnings results on Tuesday. The home improvement retailer reported GBX 17.80 earnings per share (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 Trading Up 0.4%

Shares of Kingfisher stock opened at GBX 345.10 on Wednesday. The company’s fifty day simple moving average is GBX 309.17 and its 200-day simple moving average is GBX 296.93. The stock has a market capitalization of £5.59 billion, a PE ratio of 25.01, a P/E/G ratio of 2.87 and a beta of 1.13. Kingfisher has a 1-year low of GBX 266.40 and a 1-year high of GBX 372.30. 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 News Summary

Here are the key news stories impacting Kingfisher this week:

• Positive Sentiment: Profit outlook upgraded: Kingfisher raised its annual profit guidance after first-half adjusted pre-tax profit increased 9.9% to £404 million. Strong trading at Screwfix helped offset weaker performance at B&Q, improving confidence in the retailer’s earnings trajectory. Kingfisher raises annual profit outlook after strong first half
• Positive Sentiment: Shareholder returns: The company plans to begin the third tranche of a £50 million share buyback this week. Buybacks can support earnings per share and signal that management believes the shares offer value. Kingfisher H1 Profit Climbs, Lifts FY27 Outlook; To Begin 3rd Tranche Of £50 Mln Buyback This Week
• Positive Sentiment: Market reaction: Reports describe Kingfisher’s shares as surging after the guidance increase, with Screwfix’s resilience viewed as the key driver of the improved outlook. Kingfisher Shares Surge: Raises Profit Guidance as Screwfix Offsets Weak B&Q
• Neutral Sentiment: Berenberg revised its valuation: The bank raised its price target from 295p to 320p but retained a “hold” rating. The higher target reflects improved expectations, although it remains below Kingfisher’s recent trading level and suggests limited upside in Berenberg’s view.
• Negative Sentiment: Uneven retail performance: Weakness at B&Q remains a concern, indicating that broader home-improvement demand is not equally strong across Kingfisher’s brands.

Kingfisher declared that its board has authorized a stock buyback program on Tuesday, September 22nd that allows the company to repurchase 0 outstanding shares. This repurchase authorization allows the home improvement retailer to purchase shares of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

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

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.