Shares in Kingfisher gained altitude after the home improvement retailer raised its full-year profit guidance despite tough consumer conditions.
At 307.8p per share, Kingfisher’s share price was last 5.3% higher in Tuesday trading.
The FTSE 100 company’s revenues rose 1% in the three months to September, to £3.3 billion. On a like-for-like basis, sales improved 0.9% year on year.
This meant sales were up 0.9% and 1.2% on reported and like-for-like metrics – at £10.1 billion – between 1 January and 30 September.
Kingfisher said “our performance to date, progress in strategic initiatives and our cost and margin discipline, despite softening market conditions in the UK and Poland in Q3, gives us the confidence to upgrade our full year adjusted profit before tax guidance.”
Full-year profits for 2025 are now tipped at between £540 million and £570 million. This is up from previous forecasts of profits “at the upper end” of a £480 million to £540 million range.
Strength At Home
Kingfisher said “continued volume and transaction growth” have both helped drive sales in the year to date.
Revenues were especially strong in the company’s core UK and Ireland market, where it operates the B&Q and Screwfix fascias.
Thanks in part to market share gains, sales at home were up 4.4% on a reported basis and up 3.6% on a like-for-like basis in the year to date.
Turnover slowed slightly in the third quarter, to 4.2% and 3% respectively. Kingfisher makes 52% of group sales from British and Irish customers.
It cautioned that “we continue to be mindful of inflation, uncertainty ahead of the Autumn Budget and the softening labour market.”
Trouble Elsewhere
In its second largest market of France, sales were down 1.4% at headline level and 2.3% on a like-for-like basis between January and September.
Kingfisher said trading in the period was impacted by “weak consumer sentiment, an uncertain political environment, and national strike action in the quarter.”
Sales in Poland were up 1.3% and down 1.8% over the nine months on a reported and like-for-like basis respectively.
Building Confidence
Chief executive Thierry Garnier said that “we delivered another quarter of high quality, volume-led growth, driven by our Group strategic initiatives in e-commerce and trade and by our performance in core and ‘big-ticket’ categories.”
He noted that “B&Q, Screwfix and Iberia continue to strongly outperform their markets [and] our performance to date and progress in our strategic initiatives give us the confidence to upgrade our full year profit guidance.”
Cautiously Optimistic
Analyst Adam Vettese of eToro commented that “Kingfisher’s latest trading update presents a cautiously optimistic tone… supported by solid UK and Ireland performance and ongoing operational improvements.”
He added that “the continuation of a £300 million share buyback programme highlights management’s confidence in future cash generation, while digital investments are driving higher online sales penetration and maintaining market share across core brands.”
Vettese also noted that “while Kingfisher’s share price has outperformed the FTSE 100 in 2025 and current technicals remain constructive, ongoing macroeconomic uncertainty and soft consumer demand in some regions could moderate further upside in the near term.”
Kingfisher’ shares have risen 24.4% in value since 1 January. The broader FTSE 100 is up 15.5% over the period.