Kingfisher, the owner of B&Q, raised its full-year pre-tax profit guidance following stronger-than-expected sales at its Screwfix division, partially offsetting declines in other areas of the business. The FTSE 100 company now expects profits between £595 million and £635 million, up from an earlier forecast of £565 million to £625 million.
The upgraded forecast reflects a 5.6 percent increase in like-for-like sales at Screwfix during the first half of the year, driven largely by demand among trade professionals such as plumbers, builders, and electricians. In addition, Castorama in Poland showed signs of recovery after several years of sluggish consumer confidence, supported by strong kitchen sales in both the UK and Poland. The company also benefited from a surge in demand for air conditioning and garden leisure products amid recent heatwaves.
Despite these positive developments, B&Q, Kingfisher’s flagship retail brand, faced challenges. Like-for-like sales at B&Q declined by 2.9 percent over the half-year period, with particularly steep falls of 5.1 percent in big-ticket items such as kitchens and bathroom fittings. The broader group experienced a mixed consumer environment marked by subdued spending, especially on costly home improvement products in the UK, Ireland, and France.
Ecommerce remained a bright spot for Kingfisher, growing by 11 percent year-on-year to reach £1.6 billion in sales, accounting for about 22 percent of the group’s total revenue. Adjusted pre-tax profits for the first half rose 8.9 percent on a constant currency basis to £404 million.
Kingfisher’s performance has softened since the peak of the pandemic, when lockdown restrictions spurred a surge in DIY and home renovation projects. Annual sales reached a record £13.2 billion in the year ending January 2022. However, heightened living costs, a cooling housing market, and lingering economic uncertainty have tempered consumer spending in recent years.
Outgoing Kingfisher CEO Thierry Garnier pointed to steady progress in key areas such as market share, trade channels, and supply chain efficiency. Yet he described the consumer backdrop as “mixed,” emphasizing cautious optimism rather than a robust recovery. Garnier is set to leave the company to lead Dutch-Belgian retailer Ahold Delhaize, with no update provided on his successor.
Some analysts noted that Kingfisher’s profit growth owes more to improved margins and operational control than to a significant resurgence in consumer DIY activity. One market expert suggested the results show the company’s ability to maintain profitability even as like-for-like sales remain mostly flat, rather than indicating a widespread revival of home improvement spending.
Overall, Kingfisher’s half-year report highlights a complex landscape where growth in trade-focused outlets and certain product categories balances ongoing challenges at traditional consumer-facing stores like B&Q. The company’s outlook reflects cautious confidence amid evolving economic conditions and shifting consumer priorities.