Kingfisher shares jumped on Tuesday after the DIY group raised its profit guidance, driven by strong performance in the UK and Ireland.
Kingfisher reported group like-for-like sales growth of 0.9% in the third quarter, rising to 1.6% year-to-date on an underlying basis, driven by continued volume and transaction growth. Total group sales reached £3.25bn in the quarter and £10.06bn for the nine months.
The UK and Ireland delivered the standout performance, with LFL sales up 3.0% in Q3 as the group continued to gain market share.
Strong momentum in trade and e-commerce channels bolstered results, with trade sales climbing 12.1% to reach 31.3% penetration, whilst e-commerce sales grew 10.2% to 20.7% penetration.
“Kingfisher’s quarter suggests the strategy is finally gaining some traction. B&Q and Screwfix are clearly winning the battle for market share in the UK, with the shift towards trade and online channels paying dividends,” explained Chris Beauchamp, Chief Market Analyst UK at IG.
Kingfisher shares were 5% higher at the time of writing.
Performance was more subdued in continental Europe. French LFL sales declined 2.5% in constant currency terms, with year-to-date sales down 2.3%. Poland saw LFL sales fall 1.3% in the quarter and 1.8% year-to-date, with both markets reflecting softer consumer demand.
Despite softness in Europe, the retailer upgraded its full-year adjusted profit before tax guidance to approximately £540m-£570m, up from the previous range of £480m-£540m.
The company has completed £175m of its current £300m share buyback programme, which remains on track for completion by March 2026.
“Kingfisher’s latest trading update presents a cautiously optimistic tone, with the company raising profit guidance, supported by solid UK and Ireland performance and ongoing operational improvements,” said Adam Vettese, market analyst for eToro.
“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.”