Kingfisher Share Price (KGF)

"Sun shines on seasonal and big ticket spending" - new research with audio summary freely available here: https://www.equitydevelopment.co.uk/research/sun-shines-on-seasonal-and-big-ticket-spending

Kingfisher’s strong Q126 sales growth of 1.6% (+3.1% ex calendar and FX, 2.7% LFL), beat consensus estimates by c.1.5% as B&Q led with nearly 8% LFL sales growth.

The warm and sunny weather over the late Easter holiday drove seasonal sales (e.g. outdoor and gardening) and encouraged “big-ticket” projects. Some of this spend is likely to have pulled-forward demand from 2Q26 hence there is no change to management’s FY26E guidance of £480m-£540m Adj. PBT at this stage. However, with market share gains and further strategic progress in trade and e-commerce we see significant profit growth potential for Kingfisher.

We raise our FV from 340p to 355p, equivalent to 14x cal 2026 PER and a 3.5% dividend yield.

There were seven at the start of March, now down to 1. Looks like they all caught a cold thanks to the share buyback. Nice work Kingfisher!

Maj Nazir (Group Investor Relations Director) discussed KGF FY25 Results following their release in March, exploring the progress the business is making in addressing the French operations and the march towards 5-7% retail margins. He also discussed the strength of their trade offering across both the UK (Tradepoint and Screwfix) as well as France and Poland.

The full video has been divided into chapters, as below:

0:00:00 Welcome remarks

0:00:28 Introduction - Kingfisher investment thesis and strategic priorities

0:11:15 Financial results

0:14:52 Outlook & guidance

0:17:13 Strategy update

0:30:41 Summary

0:31:53 Question & Answers

Watch the video here: https://www.equitydevelopment.co.uk/research/kingfisher-plc-investor-presentation-april-2025-0

Kingfisher plc will be hosting an Investor Presentation with Q&A on Tuesday 8th April at 10.00am, following the release of their Full Year results for the period to 31st January 2025.

Maj Nazir (Group Investor Relations Director) will be presenting from Kingfisher, and the online event is open to all existing & potential shareholders.

Questions can be submitted during the presentation and will be addressed at the end.

Sign up to register at this link: https://www.equitydevelopment.co.uk/news-and-events/kingfisher-investorpresentation-8april2025

"Market share wins and cyclical upside appeal" - new note available here: https://www.equitydevelopment.co.uk/research/market-share-wins-and-cyclical-upside-appeal

Kingfisher is primed, ready for a recovery in “big-ticket” spending. However, management’s understandably cautious guidance range for FY26E Adj. PBT has led the stock to give up its YTD gains. We believe this enhances Kingfisher’s value attractions.

Kingfisher’s FY25 results illustrated that management’s strategy to grow trade penetration and e-commerce sales is driving market share gains in the UK & Ireland, France and Poland.

Over the next three years we forecast c.36% growth in Adj. PBT and our upside scenario suggests c.90% potential growth. Whilst investors wait for this, we forecast a 10.5% FCF yield and substantial cash returns.

Hence, trading on under 9 x cal 2026 PER, we see scope for a significant re-rating. We reiterate our 340p Fair Value, equal to c.12.5x cal 2026 PER and c.3.5% dividend yield.