Kingfisher plc (LSE:KGF) reported a resilient first-quarter performance against a subdued home improvement backdrop, with underlying like-for-like sales declining 0.7%, while total sales including marketplace activity increased 0.8%.
The group said demand in core product categories remained stable, supported by stronger performances at Screwfix and its Polish operations. Seasonal trading was affected by a delayed start to spring, while larger discretionary purchases such as bathrooms continued to face softer demand. Kitchens, however, delivered stronger results across both the UK and Polish markets.
Trade and e-commerce operations continue to expand
Kingfisher’s strategic growth initiatives continued to gain traction during the quarter. Trade-focused sales rose 17% excluding Screwfix and now represent 31% of total group sales, while e-commerce revenue increased 14% excluding Screwfix to account for 22% of group sales.
Marketplace gross merchandise value climbed 39% to £163 million, and the company opened five additional stores during the period, including the first standalone TradePoint location.
Management reiterated its guidance for the 2026/27 financial year, maintaining expectations for adjusted pre-tax profit in the range of £565 million to £625 million. The company also reaffirmed expectations for strong free cash flow generation and continuation of its ongoing £300 million share buyback programme, reflecting confidence in the long-term strategy despite cautious consumer spending conditions.
Valuation and cash flow remain supportive despite weaker technical backdrop
Kingfisher’s outlook continues to benefit from strong cash generation and what is viewed as an attractive valuation profile, supported by a low price-to-earnings ratio and solid dividend yield. Recent trading guidance and operational execution have also provided reassurance to investors.
However, these positives are partly offset by profitability levels that remain below those achieved in 2022, alongside weaker technical indicators characterised by a broader downtrend and subdued market momentum.
More about Kingfisher
Kingfisher plc is an international home improvement retailer operating across the UK, Ireland, France, Poland and Iberia. Its portfolio includes brands such as B&Q, Screwfix, Castorama and Brico Dépôt. The group sells DIY, trade and building products while increasingly focusing on e-commerce, marketplace expansion and trade customer growth across its European operations.
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