Howden Joinery (LON:HWDN) shares jumped 11% on Thursday after the kitchen and joinery supplier posted stronger-than-expected first-half results.
Despite a tough backdrop for home improvement retailers, the company delivered a 4.4% rise in pretax profit to £117.2 million for the six months to June 14.
Revenue rose 3.2% to just under £1 billion, supported by sales incentives, price increases and a greater focus on kitchen ranges, which carry higher margins. Same-depot revenue in the UK grew 1.7%, while its smaller international footprint saw a sharper 9.8% rise.
Howden also tightened its grip on profitability. Basic earnings per share climbed 6.5% to 16.4p, and the company raised its interim dividend by 2% to 5.0p. Net cash nearly doubled over the year, hitting £321.4 million by the end of June.
The company reaffirmed its full-year guidance, noting that its performance typically leans towards the second half, with autumn being the core selling season.
Expansion efforts are continuing at pace. Three of the 25 new UK depots planned for 2025 have opened, and more than half of the estate is now operating under the firm’s updated store format. Howden sees potential for around 1,000 depots in the long run.
Internationally, the rollout is picking up in Ireland, where one of five new depots for the year is already trading.
Howden’s stock has underperformed over the past year. But the latest update suggests the company is managing to keep momentum, even as many rivals struggle to drive growth. For now, kitchens are still paying the bills.