Kingfisher (LON:KGF) Issues Quarterly Earnings Results

Kingfisher (LON:KGF) released its quarterly 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 return on equity of 4.86% and a net margin of 2.29%.

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 Performance

LON:KGF traded up GBX 1.01 during trading on Friday, reaching GBX 329.21. The company’s stock had a trading volume of 5,121,396 shares, compared to its average volume of 27,782,168. The firm has a market cap of £5.33 billion, a price-to-earnings ratio of 23.86, a price-to-earnings-growth ratio of 2.87 and a beta of 1.13. The company has a debt-to-equity ratio of 38.32, a quick ratio of 0.27 and a current ratio of 1.23. The firm has a 50 day moving average of GBX 312.22 and a 200-day moving average of GBX 297.20. Kingfisher has a 12 month low of GBX 266.40 and a 12 month high of GBX 372.30.

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 buy shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

KGF has been the topic of a number of recent research reports. Berenberg Bank raised their target price on Kingfisher from GBX 295 to GBX 320 and gave the company a “hold” rating in a report on Wednesday. Royal Bank Of Canada reiterated an “outperform” rating and set a GBX 350 price target on shares of Kingfisher in a report on Friday, July 10th. Finally, Jefferies Financial Group reissued a “hold” rating and issued a GBX 291 price target on shares of Kingfisher in a research report on Monday, July 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 company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price 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.