Kingfisher (KGF) shares rallied sharply this morning after the B&Q and Screwfix owner reported a broadly reassuring first-quarter trading update, with the stock initially surging over 8% to an intraday high of 316p before settling around 304.4p, still up approximately 4% on the day.
Investor confidence stemmed from the company’s decision to reiterate full-year adjusted pre-tax profit guidance of £565m to £625m, signalling management’s belief that current trading headwinds are temporary rather than structural.
Total group sales for the three-month period reached £3.3bn, up 1.4%, while underlying like-for-like sales fell 0.7%, a figure the group attributed largely to a late start to spring which dampened footfall and seasonal demand.
Chief executive Thierry Garnier described the quarter as a “resilient start” and highlighted the company’s success in gaining market share against a soft market backdrop.
The standout performer was Screwfix, which delivered disproportionate growth amid the mixed overall picture. The professional-focused banner posted like-for-like sales growth of 4.1% as the chain grabbed larger market share in the UK and Ireland.
This contrasted sharply with B&Q, where like-for-like sales fell 4.1%, with the group blaming poor weather for reducing footfall and demand for outdoor products.
More encouragingly for investors, Kingfisher’s strategic growth engines continued to perform, with trade sales growing 17% excluding Screwfix, while e-commerce revenues climbed 14% on the same basis, and marketplace gross merchandise value surging 39% to £163m.
This diversification between professional-focused trade channels and consumer-facing digital platforms provides a clear cushion against the current softness in traditional B&Q footfall.