Kingfisher (LSE:KGF) has lifted its full-year profit guidance following a 10.2% increase in first-half earnings, driven by robust demand in the UK, sending shares up more than 19% in early London trading.
The home improvement retailer, which owns B&Q and Screwfix in the UK and Castorama and Brico Dépôt in France and other markets, now expects adjusted pre-tax profit at the upper end of its £480 million–£540 million range, compared with £528 million in 2024/25. Adjusted pre-tax profit for the six months ending 31 July reached £368 million, with sales up 1% to £6.81 billion.
Underlying like-for-like sales rose 1.9%, with Q2 growth of 1.4%. B&Q and Screwfix reported like-for-like gains of 4.4% and 3.0% respectively, aided by favorable weather boosting outdoor product sales. Retail profit margin increased by 40 basis points to 6.6%, supported by stronger gross margins and cost initiatives, leading to 16.5% growth in adjusted EPS to 15.3p.
Kingfisher also reported market share gains in the UK, France, and Spain. CEO Thierry Garnier stated: “Our expectations for our markets remain consistent with those outlined in March, while mindful of mixed consumer sentiment and political uncertainty.”
The company confirmed it is accelerating its £300 million share buyback program, now expected to complete by March 2026. Statutory pre-tax profit rose 4.1% to £338 million, while free cash flow increased 13.5% to £478 million.
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