By James Davey
LONDON (Reuters) -European home improvement retailer Kingfisher upgraded its full-year profit outlook on Tuesday, saying it was winning market share in the UK despite softening trading conditions.
The FTSE-100 listed group, which owns B&Q and Screwfix in the UK, said it was “mindful of inflation, uncertainty ahead of the Autumn Budget and the softening labour market”.
Group underlying like-for-like sales rose 0.9% in the third quarter to October 31, driven by a 3% rise in the UK and Ireland.
Shares in Kingfisher were up 5.4% in early trading, extending 2025 gains to 24%, as its UK performance bucked the wider retail market.
Official data published last week showed British retail sales tumbled in October, while a closely watched gauge of household sentiment fell this month, adding to signs of waning consumer spending ahead of finance minister Rachel Reeves’ budget statement on Wednesday.
“We delivered another quarter of high-quality, volume-led growth, driven by our Group strategic initiatives in e-commerce and trade and by our performance in core and ‘big-ticket’ categories,” Chief Executive Thierry Garnier said.
However, the group said consumer demand was subdued in both France, where it trades as Castorama and Brico Depot, and in Poland where like-for-like sales fell 2.5% and 1.3% respectively.
It said the French market was affected by weak consumer sentiment, an uncertain political environment, and national strike action in the quarter.
The group said it now expected adjusted profit before tax for its year to end-January 2026 in the range of 540 million to 570 million pounds ($707-$747 million), up from previous guidance of the upper end of 480 million to 540 million pounds.
Kingfisher made 528 million pounds in 2024/25.
($1 = 0.7632 pounds)
(Reporting by James Davey; Editing by Sarah Young and Emelia Sithole-Matarise)
