Kingfisher share price rallies ahead of H1 results
Investors await first-half earnings from Kingfisher
Kingfisher will publish its first-half (H1) figures on 17 September, with investors closely watching for signs of recovery in its French operations. The company's performance is critical, especially given the challenging economic environments in its key markets. Analysts are particularly focused on whether Kingfisher can demonstrate progress in its French business following the restructuring of a third of its Castorama stores. This modernisation effort, aimed at increasing sales densities, is expected to be a gradual process.
Kingfisher earnings – what to expect
The consensus among analysts paints a cautious picture for Kingfisher's near-term performance. With a trailing 12-month price-to-earnings (P/E) ratio of 15.45 and a forward 12-month P/E of 13.81, the market appears to be pricing in some growth expectations. However, the company's financial metrics for the current period (Year 2025) show mixed signals. While the adjusted earnings per share (EPS) is estimated at 20.30p, there's a slight 0.20% decrease in the 4-week change. Revenue is projected to be £12.963 billion, essentially flat over the period.
Kingfisher's recent performance history has been relatively strong, with the company beating estimates in 5 out of 8 past quarters for EPS, revenue, and net income, and 6 out of 8 for operating profit. This track record lends some credibility to the company's ability to navigate challenging market conditions.
What do the brokers say about Kingfisher?
The company's stock price currently stands at 280.40p, slightly above the average analyst target price of 268.80p. The analyst community appears divided on the stock's prospects, with a Buy/Hold/Sell ratio of 3/9/5, indicating a cautious stance overall.
Outlook darkens thanks to poor weather
Looking ahead, Kingfisher faces several headwinds. Unfavourable weather conditions in the UK and Ireland likely impacted foot traffic at its B&Q stores during June and July. The do it yourself (DIY) industry in France continues to show weakness, suggesting low demand at Brico Depot. Additionally, consumer sentiment in Poland remains subdued, potentially affecting sales in that market. These factors point to a potentially weak second quarter (Q2) performance.
Given these challenges, the market consensus expects a 20% decline in H1 pretax profit. This puts increased importance on the company's second-half outlook, as Kingfisher will need to achieve approximately 8% profit growth to meet its full-year guidance of £490-£550 million pretax profit. This guidance range represents a 3-14% year-over-year (YoY) decline, underscoring the difficult operating environment the company faces.
Technical analysis on the Kingfisher share price
The Kingfisher share price, up 17% year-to-date, has been trading in an uptrend channel since the beginning of the year and is currently being supported by the 200-week simple moving average (SMA) at 272.80p. While it and the current September low at 273.00p underpins, short-term upside pressure will remain intact.
Kingfisher weekly candlestick chart
The medium-term uptrend will remain valid as long as the uptrend channel support line at 261.10p and, more importantly, the August low at 270.90p underpins on a weekly closing basis.
A rise above the August peak at 288.30p would engage the February and March 2023 peaks at 293.30p-to-294.80p.