Kingfisher raises annual profit outlook after strong first half

By James Davey

LONDON, Sept 22 (Reuters) - European home improvement retailer Kingfisher raised its full-year profit forecast on Tuesday 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 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 ($9.48 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 £404 million, helped by gross margin expansion of 70 basis points, cost control and a £14 million business rates refund.

RESILIENT DO-IT-YOURSELF TRENDS

"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 end-January 2027 adjusted profit before tax of £595 million to £635 million, versus previous guidance of £565 to £625 million, and compared to the £560 million 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."

($1 = 0.7491 pounds)

(Reporting by James Davey; editing by Sarah Young and Susan Fenton)