Shares in B&Q owner Kingfisher unexpectedly spike after sales boost
Kingfisher, the parent company of B&Q and Screwfix, saw its share price rise more than 17 per cent on Tuesday morning after posting a better-than-expected sales update.
The FTSE 100 firm told markets that sales improved 0.9 per cent in the six months ended 31 July, 2025, to £6.8bn, driven by a 4.4 per cent rise in UK sales.
Operating profit increased 2.1 per cent to £383m, while earnings per share rose 4.1 per cent to 13.4p.
CEO Thierry Garnier called the results “strong”, adding that he has been “encouraged by underlying quarter-on-quarter growth in our core categories, and a third consecutive quarter of growth in big ticket sales”.
Kingfisher, like other stores which specialise in trade and DIY equipment, has been struggling with a lack of consumer appetite for big, expensive projects.
But, as Wickes also flagged earlier this year, Brits are slowly re-warming to the prospect as interest rate cats and wage growth pad wallets.
“Some of its strong showing can be attributed to a one-off factor in the warm summer weather which helped drive sales of garden furniture and barbeques… so investors will be watching future updates closely for any signs of the outlook deteriorating,” AJ Bell investment director Russ Mould said.
“However, Kingfisher is showing signs of setting itself on a sustainable path and investors are reacting accordingly,” he added.
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Kingfisher posts ‘commendable’ results
Many analysts pointed to Kingfisher’s better-than-expected numbers in a still-tough consumer environment.
Adam Vettese, market analyst for eToro, said: “Kingfisher’s first half numbers showcase commendable operational execution in a tough retail environment.”
“For investors, the stock offers a compelling dividend yield and clear management focus on shareholder returns. Yet, the outlook depends heavily on macro recovery and sustaining these recent operational gains.
“While Kingfisher’s operational resilience stands out, sustainable sales growth across regions will be crucial to unlock the next leg of value for shareholders,” Vettese said.
Chris Beauchamp, chief market analyst at IG, added that the “investment case for Kingfisher has been given a solid boost”, given improvements in margins, cash flow and an upgrade to forecasts.
“Combined with the recent improvement in Wickes’ trading, it seems things are finally looking up for this area of UK retail,” he added.