Kingfisher (KGF.L) saw its stock price increase by approximately 2.4% following the release of its full-year results for the period ending January 31, 2026. The positive market reaction reflects investor confidence in the company’s strategic progress and financial discipline, which drove a strong performance despite a mixed consumer environment.
Headline Numbers:
LFL Sales: +1.4% underlying, driven by volume and transaction growth.
Adjusted PBT: +6% to £560m, boosted by gross margin expansion and cost control.
Adjusted EPS: Up 15% to 23.8p, supported by share buybacks.
Free Cash Flow: £512m, underpinned by inventory improvements.
Dividend: Full year dividend of 12.40p per share maintained.
Kingfisher’s commitment to returning capital to shareholders is evident through the completion of a £300m share buyback program and the announcement of a new one of the same size. This action, coupled with a consistent dividend payout, signals management’s confidence in the company’s financial health and future prospects. Since September 2021, Kingfisher has completed £1.2bn of share buybacks, demonstrating a sustained focus on shareholder value.
Driver Breakdown:
Trade Sales Growth: Excluding Screwfix, trade sales surged by 23%, increasing group trade sales penetration to 30%.
E-commerce Expansion: E-commerce sales grew by 20% excluding Screwfix, with group e-commerce penetration reaching 21%. Marketplace GMV rose by 58% to £518m.
Market Share Gains: B&Q, Screwfix, Brico Dépôt France, Castorama France, and Spain all gained market share, indicating successful competitive strategies.
CEO Thierry Garnier stated, “We have continued to execute our strategy at pace and delivered good margin and cost discipline. This resulted in significant market share gains, profit growth of +13% when excluding last year’s business rates one-off and strong free cash flow.” Garnier’s statement reinforces the company’s focus on strategic execution and financial efficiency.
The company’s guidance for FY 26/27 includes an adjusted PBT range of £565m-£625m and free cash flow between £450m-£510m. This outlook, combined with strategic advancements in trade and e-commerce, positions Kingfisher for continued growth. The expansion plans, including net store openings, mainly from Screwfix UK & Ireland, B&Q and Castorama Poland, are expected to contribute approximately +1% to total Group sales.
Analyst Summary: Bull and Bear Cases
Bull Case:
- Like-for-like sales grew by 1.4%, driven by increased volume and transactions.
- Adjusted pre-tax profit rose by 6% to £560m, supported by margin expansion and cost control.
- A new £300m share buyback program was announced, signaling confidence in financial health.
- Significant growth in trade sales (up 23%) and e-commerce (up 20%).
- Market share gains were achieved across major brands including B&Q and Screwfix.
- Positive guidance for FY 26/27 with adjusted PBT expected between £565m-£625m.
Bear Case:
- The company is operating within a mixed and potentially uncertain consumer environment.
- Future performance could be impacted by potential cost pressures.
- Broader macroeconomic uncertainties remain a risk for the retail sector.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
