Kingfisher's underlying sales edge lower in soft home improvement market
Kingfisher's Q1 Performance and Market Analysis
By James Davey
LONDON, May 26 (Reuters) - European home improvement retailer Kingfisher reported a 0.7% decline in first-quarter underlying sales on Tuesday, citing a soft market backdrop, but maintained its full-year profit guidance.
The FTSE 100-listed group, which owns B&Q and Screwfix in the UK and Castorama and Brico Depot in France and other markets, said core categories proved resilient despite a late start to spring impacting footfall and seasonal demand. Total sales rose 0.8%.
Shares in Kingfisher were up 4.5% in early trading, paring losses over the last three months to 16.3%.
Analyst Reactions and Market Context
Update Reassuring, Say Analysts
Analysts at RBC Europe said the update was reassuring given a later start to spring this year. They noted that Kingfisher's direct exposure to the Middle East is very low.
UK Market Performance
In the UK, Screwfix's like-for-like sales rose 4.1% in the first quarter to April 30 and it won market share. But B&Q's sales on the same basis fell 4.1%, reflecting its higher exposure to seasonal items such as garden furniture and plants, and a tough comparative number with last year.
Official data, published last week, showed British retail sales fell by the most in nearly a year in April as fuel sales plummeted, adding to signs of waning consumer spending against the backdrop of the Iran war and rising energy costs.
International Performance
France and Poland
In France, Kingfisher's like-for-like sales fell 2.1% in the first quarter. They were down 0.2% in Poland.
Profit Guidance and Leadership Update
Profit Guidance Maintained
The group said it was sticking with its full-year forecast for adjusted pretax profit in a range of £565 million to £625 million ($761 million-$842 million) versus the £560 million made in 2025/26.
Prior to the update, analysts were on average forecasting £589 million.
"We delivered a resilient start to the year, executing well and gaining market share against a soft market backdrop," CEO Thierry Garnier said, highlighting double-digit growth in e-commerce and trade sales.
Leadership Changes
Earlier this month Garnier resigned after nearly seven years as CEO to become the boss of Netherlands-headquartered supermarket group Ahold Delhaize. He does, however, have a 12-month notice period.
Additional Information
($1 = 0.7423 pounds)
(Reporting by James Davey, Editing by Sam Tabahriti, Kate Holton and Jan Harvey)
