Kingfisher plc - Strategy driving profit upgrades despite soft markets
Kingfisher’s 3Q26 sales growth of 1.0%, including LFL +0.9%, was better than expected and driven by market share gains in UK. In addition, the group’s investments in e-commerce and trade continued to deliver double digit growth across the group as self-help actions helped offset soft markets, particularly in France and Poland.Building on the strong profit performance in H126, management has upgraded FY26E Adj. PBT guidance again, to £540m-£570m. We raise our FY26E by 3.3% to £555m and maintain our FY27E Adj. PBT of c.£596m.
Although Kingfisher’s share price rallied 6% yesterday, we see scope for a further re-rating towards our 365p Fair Value, equivalent to c.14x cal 2026 PER and a c. 3.5% dividend yield.
Kingfisher supplies home improvement products and services through a network of retail stores and other channels, located mainly in the U.K. and continental Europe. As of Jan 31 2017, Co. had nearly 1,200 stores in 10 countries across Europe.
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