Kingfisher (LON:KGF) Issues Earnings Results

Key Points

• Kingfisher upgraded its full-year outlook, raising adjusted profit-before-tax guidance to £595–£635 million and free-cash-flow guidance to £480–£520 million.
• First-half adjusted profit before tax rose 9.9% to £404 million, supported by gross-margin expansion and £44 million in structural cost savings; adjusted EPS increased 16%.
• Screwfix was a key growth driver, while strategic channels such as e-commerce, marketplace sales and retail media also expanded sharply. However, weakness in big-ticket categories, DIY demand and B&Q’s core sales, alongside cost pressures, remained concerns.

Kingfisher (LON:KGF - Get Free Report) released 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 Price Performance

LON:KGF opened at GBX 336.40 on Tuesday. 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 company has a market capitalization of £5.45 billion, a P/E ratio of 24.38, a P/E/G ratio of 2.87 and a beta of 1.13. Kingfisher has a 12 month low of GBX 266.40 and a 12 month high of GBX 372.30. The business's 50-day moving average is GBX 307.98 and its 200 day moving average is GBX 296.99.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on KGF. Berenberg Bank restated a "hold" rating and set a GBX 295 price objective on shares of Kingfisher in a research report on Wednesday, May 27th. Royal Bank Of Canada reissued an "outperform" rating and set a GBX 350 price target on shares of Kingfisher in a report on Friday, July 10th. Jefferies Financial Group reaffirmed a "hold" rating and issued a GBX 291 price objective on shares of Kingfisher in a research note on Monday, July 27th. Finally, Deutsche Bank Aktiengesellschaft reissued a "sell" rating and issued a GBX 260 price target on shares of Kingfisher in a report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target 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.