Sun shines on seasonal and big ticket spending
Kingfisher’s strong Q126 sales growth of 1.6% (+3.1% ex calendar and FX, 2.7% LFL), beat consensus estimates by c.1.5% as B&Q led with nearly 8% LFL sales growth.The warm and sunny weather over the late Easter holiday drove seasonal sales (e.g. outdoor and gardening) and encouraged “big-ticket” projects. Some of this spend is likely to have pulled-forward demand from 2Q26 hence there is no change to management’s FY26E guidance of £480m-£540m Adj. PBT at this stage. However, with market share gains and further strategic progress in trade and e-commerce we see significant profit growth potential for Kingfisher.
We raise our FV from 340p to 355p, equivalent to 14x cal 2026 PER and a 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.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.