Stock Markets May 26, 2026 04:17 AM

Kingfisher Q1 Sales Slightly Exceed Estimates as Screwfix Drives Outperformance

Group maintains full-year profit and cash flow targets while some international units lag consensus

By Avery Klein

Kingfisher Plc reported first-quarter 2026-27 group sales of £3.30 billion, marginally above analyst expectations, with Screwfix delivering a notable beat. The retailer reiterated full-year adjusted profit before tax guidance of approximately £565 million to £625 million and free cash flow guidance of approximately £450 million to £510 million. While UK sales and Screwfix growth were highlights, parts of the international business missed consensus and group like-for-like sales were modestly down versus a strong prior-year comparator.

Kingfisher Q1 Sales Slightly Exceed Estimates as Screwfix Drives Outperformance

Key Points

  • Group reported first-quarter sales of £3.30 billion, slightly above the £3.29 billion consensus; total reported sales including marketplace rose 1.4%.
  • Screwfix outperformed with £712 million in sales versus a £700.4 million consensus and core like-for-like growth of 5.1%; UK and Ireland total sales were £1.74 billion, beating consensus.
  • Kingfisher reiterated full-year adjusted profit before tax guidance of approximately £565 million to £625 million and free cash flow guidance of approximately £450 million to £510 million; the £300 million share buyback remains in progress.

Shares in Kingfisher Plc rose just over 2% on Tuesday after the British home improvement group published first-quarter 2026-27 results that slightly outperformed analyst forecasts. Group reported sales for the period came in at £3.30 billion, compared with a consensus view of £3.29 billion, with Screwfix contributing total sales of £712 million against a consensus estimate of £700.4 million.

The company reaffirmed its outlook for the full year, saying it remains on track to deliver adjusted profit before tax of approximately £565 million to £625 million and free cash flow of approximately £450 million to £510 million.

On an underlying like-for-like basis, the group recorded a decline of 0.7% in the quarter, a performance that beat the consensus expectation for a 0.9% decline. Total reported sales including the marketplace rose 1.4% to reach £3.30 billion.

Breaking down regional performance, the UK and Ireland delivered total sales of £1.74 billion, ahead of the £1.72 billion consensus. Screwfix was the standout within the region: at £712 million, it exceeded the £700.4 million consensus and posted core like-for-like sales growth of 5.1%.

B&Q reported total sales of £1.03 billion compared with a consensus of £1.02 billion, while its like-for-like sales in core categories were negative 3.1%. The group noted that a late start to spring had an effect on footfall and seasonal demand. TradePoint also saw a like-for-like decline, registering negative 1.6%.

In continental markets, France’s total sales amounted to £990 million, below the consensus of £994.1 million. Within France, Castorama posted total sales of £511 million, missing the £514.6 million consensus and with like-for-like down 1.1%. Brico Dépôt recorded £479 million against a consensus of £492.9 million and a like-for-like decline of 3.1%.

Poland’s total sales of £457 million fell short of the £467 million consensus, with a like-for-like movement of negative 0.2%. By contrast, Iberia produced a positive like-for-like performance of 6.6%.

Market commentary from Jefferies described the results as "in-line," while highlighting Screwfix as "the key highlight." The analysts pointed to Screwfix’s "largely indoor, trade-led exposure (e.g. electrical and plumbing) proved more resilient compared to B&Q’s greater exposure to outdoor projects." Jefferies maintained its hold rating and retained a 12-month price target of 291 pence.

Chief executive Thierry Garnier said in a statement: "We delivered a resilient start to the year, executing well and gaining market share against a soft market backdrop. Sales including marketplace grew +0.8%, with core categories proving resilient - even as a late start to spring impacted footfall and seasonal demand. E-commerce and trade sales both delivered double-digit growth, underlining the momentum in our key growth drivers."

The company also confirmed that its £300 million share buyback programme is ongoing.


Context and implications

The quarter shows a mixed picture across Kingfisher’s portfolio. Screwfix’s trade-led exposure and indoor-focused categories delivered outperformance in the period, supporting the group’s top-line and helping it to beat modest consensus estimates. However, some international divisions, notably parts of France and Poland, missed consensus and reported negative like-for-like trends. The group’s guidance for adjusted profit before tax and free cash flow was reiterated, and management highlighted ongoing momentum in e-commerce and trade sales.

Risks

  • Seasonal disruption: management said a late start to spring impacted footfall and seasonal demand, which weighed on like-for-like sales in some core categories - this affects UK retail performance.
  • Regional underperformance: several continental operations missed consensus (France total sales £990 million vs £994.1 million consensus; Poland £457 million vs £467 million consensus), indicating uneven international demand.
  • Category exposure disparity: B&Q’s greater exposure to outdoor projects showed less resilience compared with Screwfix’s indoor, trade-led mix, creating potential vulnerability to weather-driven and seasonal swings in DIY retail.

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