Kingfisher Reiterates Full-Year Guidance, Shares Fall

Kingfisher (LON: KGF) reaffirmed its full-year guidance on Wednesday after posting modest sales growth in the first quarter.

However, shares in the home improvement group fell more than 2%. While the stock is up over 16% this year, it has fallen just over 7% in the past week. 

Group sales for the three months to 30 April rose 2.2% at constant currency to £3.31 billion, or 3.1% excluding the impact of an unfavourable trading calendar. 

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Like-for-like sales increased by 1.8%, buoyed by strong seasonal demand in the UK and Ireland, where sales grew 6.2%.

However, revenue declined 3.2% in France and 1.1% in Poland, where the company cited challenging market conditions and geopolitical pressures affecting consumer sentiment.

The company also highlighted strong e-commerce growth of 9.3% and increased trade sales penetration.

Chief Executive Thierry Garnier said, “We have made a good start to the year with underlying sales growth of 3.1%, market share gains in all key regions and further progress in our strategic priorities.”

The retailer reiterated its full-year adjusted profit before tax guidance of £480 million to £540 million, and free cash flow of £420 million to £480 million.