European home improvement retailer Kingfisher raised its full-year profit forecast today after delivering a better-than-expected 9.9% increase in its first half, driven by market share gains in the UK, Poland and Spain.
Shares in the FTSE-100 listed group, which owns B&Q and Screwfix in Ireland and the UK and Castorama and Brico Depot in France and other markets, jumped 8.8% after the results, extending gains over the last year to 32%.
Kingfisher said strong sales growth at Screwfix in Poland and Iberia, driven by trade and e-commerce initiatives, product innovation and seasonal categories, was partly offset by lower sales at B&Q and Brico Dépôt France.
Total sales, including through its marketplace, increased 1.6% to £7.1 billion over the six months to July 31, while underlying like-for-like sales rose 0.3%.
The group made an adjusted profit before tax of £404m, helped by gross margin expansion of 70 basis points, cost control and a £14m business rates refund.
“We see potential for DIY trends to be fairly resilient, helped by consumers looking to save money and to improve their homes,” analysts at RBC Europe said.
Kingfisher is now forecasting a year to the end of January 2027 adjusted profit before tax of £595m to £635m, compared to its previous guidance of £565m to £625m, and compared to the £560m it made in 2025/26.
“While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance,” CEO Thierry Garnier said.
In May, Garnier resigned after nearly seven years as CEO to become the boss of Netherlands-based supermarket group Ahold Delhaize. He does, however, have a 12-month notice period.
Garnier told reporters the board’s search for his successor was “moving at pace.”
