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Investing.com -- Kingfisher Plc raised its full-year profit outlook after reporting stronger-than-expected third-quarter sales, sending the home-improvement retailer’s shares more than 4% higher on Tuesday.
The company increased its adjusted profit-before-tax guidance to £540 million-£570 million, above the prior upper range of £480 million-£540 million, citing improved performance in the U.K. and Ireland.
Third-quarter sales for August through October rose 1% to £3.25 billion, coming in 0.9% ahead of expectations of £3.22 billion.
Like-for-like sales increased 0.9%, supported by a 1.5% gain in core categories and a 1.8% lift in big-ticket items. Seasonal products, which represent 14% of the company’s sales mix, fell 2.6%.
The U.K. and Ireland remained the strongest region for the London-listed group, which operates banners including B&Q, Screwfix, TradePoint, Brico Dépôt and Castorama across eight European markets. The region delivered a 3.0% like-for-like increase, ahead of a 1.9% consensus.
B&Q reported a 2% rise, supported by volume and transaction growth across categories. E-commerce revenue increased 19.4%, reaching 16.5% penetration, while marketplace gross merchandise value expanded 43.4%.
TradePoint rose 3.7%, and Screwfix grew 3.3%, with the period including what analysts at UBS called “a strong start to peak trading (Sep to Nov), new loyalty programme, and six new stores.”
Conditions were weaker in France, where like-for-like sales fell 2.5%. The brokerage attributed the decline to “weak consumer sentiment, uncertain political environment, and national strike action.”
Brico Dépôt fell 1.6%, while Castorama declined 3.4%, affected by softer trading in core and big-ticket categories and warmer weather that reduced demand for seasonal goods.
Poland recorded a 1.3% like-for-like decline, reflecting a market that the document described as “low single digit” in contraction, with seasonal sales “impacted by weather-related weakness in outdoor products.” Other International markets rose 10.3% on a like-for-like basis.
Alongside the profit upgrade, Kingfisher maintained full-year free-cash-flow guidance of £480 million-£520 million and confirmed plans for the acquisition of a B&Q freehold property in the fourth quarter.
The company reiterated expectations for the rest of the fiscal year, including a “+LSD%” total-addressable-market performance in the U.K. and Ireland, a “LSD to MSD% decline” in France, and a range of “+LSD% to –LSD%” in Poland.
It also said it still expects to fully offset £145 million in operating-expense headwinds through gross-margin and cost measures and will recognize a £33 million benefit related to business-rates refunds at B&Q. Capital expenditure was raised to about £370 million, up from £350 million.
Kingfisher said its £300 million share-buyback program announced in March 2025 remains scheduled for completion by the end of March 2026, with £26 million repurchased so far this fiscal year under the current plan.