REG - Kingfisher PLC - Q1 Trading Update

KingfisherAnnouncement

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RNS Number : 5205F  Kingfisher PLC  26 May 2026

Kingfisher on track to deliver full year guidance

 

Q1 Highlights

·     Underlying(±) LFL (0.7)% vs. strong prior year comparator. Total
sales including marketplace GMS +0.8%((3))

·     Core categories resilient, despite late start to spring impacting
footfall

·     Market share gains at Screwfix and in Poland. France and Spain in
line. B&Q more exposed to seasonal

·     Strong momentum from strategic growth drivers

-  Trade sales grew +17% ex-Screwfix. Group trade sales penetration 31%

-  E-commerce sales increased +14% ex-Screwfix. Group e-commerce penetration
22%. Marketplace GMV((3)) grew +39% to £163m

-  Opened 5 stores including the first standalone TradePoint

 

FY 26/27 Guidance

·     On track to deliver full year guidance: expect FY 26/27 adjusted
PBT of c.£565m-£625m and free cash flow of c.£450m-£510m

·     £300m share buyback ongoing

 

Thierry Garnier, Chief Executive Officer, said:

"We delivered a resilient start to the year, executing well and gaining market
share against a soft market backdrop. Sales including marketplace grew +0.8%,
with core categories proving resilient - even as a late start to spring
impacted footfall and seasonal demand. E-commerce and trade sales both
delivered double-digit growth, underlining the momentum in our key growth
drivers.

 

While mindful of the consumer environment, we remain absolutely focused on
delivering our strategy, disciplined gross margin and cost management, and
consistent shareholder returns. We are confident in achieving our full-year
guidance and are well positioned to capitalise on the attractive long-term
growth opportunities across our markets."

 

 Q1 trading by banner                Sales 2026/27 (£m)        % change reported  % change  % change

LFL((1))
                                                                                  cc*
 - B&Q                               1,025                     (3.0)%             (3.1)%    (4.1)%
 - Screwfix                          712                       +5.5%              +5.4%     +4.1%
 UK & Ireland                        1,737                     +0.3%              +0.2%     (0.9)%
 - Castorama                         511                       +1.8%              (1.5)%    (1.1)%
 - Brico Dépôt                       479                       +1.1%              (2.2)%    (3.1)%
 France                              990                       +1.4%              (1.8)%    (2.1)%
 Poland                              457                       +3.3%              +0.9%     (0.2)%
 - Iberia((4))                       109                       +10.2%             +6.6%     +6.6%
 - Screwfix France & Other((5))      7                         +62.9%             +58.1%    n/a
 Other International**               116                       +12.6%             +9.0%     +7.8%
 Total Group**                       3,300                     +1.4%              (0.0)%    (0.9)%
 Underlying(±) excluding calendar impact ((2))                                              (0.7)%

( )

(±)Underlying sales growth refers to sales excluding calendar and leap year
impact. In Q1 the calendar impact is (0.2)% (LFL sales (0.9)% + 0.2% =
underlying LFL of (0.7)%((2))).      *Constant currencies.
**Other International and Total Group figures exclude Romania. Total Group
including Romania sales are (0.4)% on reported currency and (1.9)% on constant
currency. On 2 May 2025, the Group completed the divestment of its 100% equity
interest in Brico Dépôt Romania.(

)

All commentary below is in constant currency.

 

UK & Ireland

·     Market declined low single digits((6)).

 

·     B&Q - total sales including marketplace GMS (1.3)%. LFL (4.1)%
against strong prior year comparator and a late start to spring impacting
footfall, seasonal sales and related purchases of core categories.
Big‑ticket reflective of a soft bathroom market, partly offset by strength
in new kitchen ranges. Strong progress in e‑commerce with sales +16% and
Marketplace GMV +29%. E-commerce penetration reached 19%. One store opened.

 

TradePoint - LFL (1.6)% against a strong prior year comparator and fewer
outdoor projects due to weather. Continued active recruitment of trade sales
partners. First standalone TradePoint opened, targeting trade customers
working in dense urban areas.

 

·     Screwfix - Significant market share gains((6)) driven by volume and
transactions. LFL +4.1% based on strong core performance (c.85% of total),
supported by continued momentum from our app-based rewards programme alongside
ultimate convenience delivered through Screwfix Sprint and Click &
Collect.

France

·     Market declined low single digits((6)) as consumer savings rates
remain elevated.

 

·     Castorama - LFL (1.1)%, a third quarter of sequential improvement.
Momentum driven by core following successful range reviews, stores previously
right-sized and revamped and good seasonal sales. Big-ticket impacted by a
subdued project environment. Continued growth in e-commerce +8.7% with
penetration reaching 10%, supported by marketplace growth. Trade penetration
grew from 1% to 8%. Completed three right-sizes and two revamps.

 

·     Brico Dépôt - LFL (3.1)% with big-ticket impacted by a subdued
project environment. Trade sales grew +28%, driven by the continued
strengthening of our trade proposition, and penetration now stands at 16%. One
store was opened in the quarter. First franchise store opened in May.

 

Poland

·     Market declined low single digits((6)).

 

·     Outperformed the market. LFL (0.2)% with resilient demand in core
growing +2%. Seasonal impacted by cold temperatures. Big-ticket reflective of
weakness in bathroom market, partly offset by market share gains in kitchens.
Continued momentum in e-commerce sales +41% and trade sales +13%. Trade
penetration stands at 28%. One store opened in April.

 

Other International

 

·      Iberia - strong LFL +6.6% led by core and seasonal categories.
Trade sales growth +44% with good uptake of the loyalty programme.

·      Screwfix France - continued progress with store LFL growth of
+55% supported by strong customer recruitment and growing share of wallet as
trade customers become more familiar with the Screwfix proposition. One store
opened.

 

 

LFL sales by category

 

 Q1                                         % LFL change((1))
                       Core((7))  Big-ticket((8))  Seasonal((9))  Q1 26/27
 -B&Q                                      (3.1)%     (2.1)%           (7.5)%         (4.1)%
 -Screwfix                                 +5.1%      +2.1%            (3.5)%         +4.1%
 UK & Ireland                               +0.8%      (1.1)%           (6.8)%         (0.9)%
 -Castorama                                (0.2)%     (10.7)%          +4.1%          (1.1)%
 -Brico Dépôt                              (2.6)%     (7.9)%           +0.4%          (3.1)%
 France                                     (1.4)%     (9.2)%           +2.4%          (2.1)%
 Poland                                     +2.0%      (1.7)%           (5.6)%         (0.2)%
 -Iberia((4))                              +6.8%      (0.4)%           +19.4%         +6.6%
 Other International*                       +8.2%      +0.9%            +19.4%         +7.8%
 Group*                                     +0.6%      (4.4)%           (3.0)%         (0.9)%
 Underlying excluding calendar impact((2))  +0.8%      (4.2)%           (2.8)%         (0.7)%

*Includes Screwfix France and other, excludes Romania

 

Core (65% of sales): resilient performance across banners, led by strong
performance of Screwfix, partly offset by softer sales at B&Q with lower
footfall related to a late start to spring.

 

Big-ticket (15% of sales): subdued big-ticket market, particularly in the
bathroom category, partially offset by strong kitchen performance at B&Q
and in Poland driven by recent range reviews. Bathroom range reviews are
planned in 2026.

 

Seasonal (20% of sales): due to a late start of spring in UK and Poland,
partially offset by growth in France and Iberia.

 

 

Guidance for FY 26/27

We expect to deliver:

·     Adjusted PBT in the range of approximately £565m-£625m

·     Free cash flow in the range of approximately £450m-£510m

 

Key Assumptions:

·     Space: sales impact of c.+1%, mainly from Screwfix UK &
Ireland, B&Q and Castorama Poland

·     Net finance costs: c.£105m (FY 25/26: £91m)

·     Adjusted effective tax rate: c.26% (FY 25/26: 26%)

·     Capex: c.£400m (FY 25/26: £388m)

·     £13m non-recurring 2025/26 losses

 

 

 

 

Footnotes

((1)) LFL (like-for-like) sales growth represents the constant currency,
year-on-year sales growth for stores that have been open for more than one
year.

((2)) Underlying growth refers to LFL sales excluding calendar impact:
Calendar impact represents the impact of the annual calendar shift on LFL
sales growth due to different days of the week falling into or out of the
current period compared to the prior period. For example, historically, higher
trading is seen on a Friday and Saturday as compared to a Sunday. This
includes the impact of national public holidays falling on different days of
the week compared to the prior period. The estimated impact of the annual
calendar shift on Q1 26/27 LFL sales is (0.2)%.

((3)) Gross merchandise sales (GMS) refers to the transaction value (excluding
VAT) from the sale of products including third-party e-commerce marketplace
vendors. Marketplace GMV is the total transaction value (including VAT) from
the sale of products supplied by third-party e-commerce marketplace vendors.
What is recorded in revenue is the commission take rate which is c.10-15% of
GMV.

((4)) Brico Dépôt Spain and Portugal.

((5)) Screwfix France & Other consists of the consolidated results of
Screwfix France and wholesale agreements.

((6)) Market numbers based on, GfK, BRC (British Retail Consortium) and
Barclays for the period of February 2026 to April 2026; GfK, Banque de France
for France for the period of February 2026 to March 2026; GFK for Poland for
the period February 2026 to April 2026; AECOC for Spain for the period of
February 2026 to April 2026.

((7)) Core category sales include the sales from non-seasonal products across
all our categories, other than big-ticket sales.

((8)) Big-ticket category sales include the sales from kitchen, bathroom &
storage products.

((9)) Seasonal category sales include the sales from certain products within
our outdoor, electricals, plumbing, heating & cooling (EPHC) and surfaces
& décor categories.

 

Please refer to the glossary in Kingfisher's 2025/26 Full Year Results
announcement for full definitions of Alternative Performance Measures.

 

 

Contacts

                     Tel:                  Email:
 Investor Relations  +44 (0) 20 7372 8008  investorenquiries@kingfisher.com (mailto:investorenquiries@kingfisher.com)
 Media Relations     +44 (0) 20 7644 1030  corpcomms@kingfisher.com (mailto:corpcomms@kingfisher.com)
 Teneo               +44 (0) 20 7420 3184  kfteam@teneo.com (mailto:kfteam@teneo.com)

 

Q1 trading update and data tables

This announcement and data tables for Q1 26/27 sales can be downloaded from
the Investors section of our website at www.kingfisher.com/investors
(http://www.kingfisher.com/investors) .

 

Financial calendar

 Annual General Meeting   26 June 2026
 Half year results        22 September 2026
 Q3 26/27 trading update  24 November 2026(±)

 

(±) Dates are provisional and may be subject to change

 

American Depository Receipts

Kingfisher American Depository Receipts are traded in the US on the OTCQX
platform: (OTCQX: KGFHY) http://www.otcmarkets.com/stock/KGFHY/quote
(http://www.otcmarkets.com/stock/KGFHY/quote) .

 

 

About Kingfisher plc

Kingfisher plc is an international home improvement company with over 1,800
stores, supported by a team of c.70,000 colleagues. We operate in seven
countries across Europe under retail banners including B&Q, Castorama,
Brico Dépôt, Screwfix, TradePoint and Koçtaş. We offer home improvement
products and services to consumers and trade professionals who shop in our
stores and via our e-commerce channels.

 

Forward-looking statements

You are not to construe the content of this announcement as investment, legal
or tax advice and you should make your own evaluation of the Company and the
market. If you are in any doubt about the contents of this announcement or the
action you should take, you should consult a person authorised under the
Financial Services and Markets Act 2000 (as amended) (or if you are a person
outside the UK, otherwise duly qualified in your jurisdiction).

 

This announcement has been prepared in relation to sales for the quarter ended
30 April 2026. The financial information referenced in this announcement is
not audited and does not contain sufficient detail to allow a full
understanding of the results of the Group. Nothing in this announcement should
be construed as either an offer or invitation to sell or any offering of
securities or any invitation or inducement to any person to underwrite,
subscribe for or otherwise acquire securities in any company within the Group
or an invitation or inducement to engage in investment activity under Section
21 of the Financial Services and Markets Act 2000 (as amended) (or, otherwise
under any other law, regulation or exchange rules in any other applicable
jurisdiction).

 

Certain information contained in this announcement may constitute
"forward-looking statements" (including within the meaning of the safe harbour
provisions of the United States Private Securities Litigation Reform Act of
1995), which can be identified by the use of terms such as "may", "will",
"would", "could", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "plan", "goal", "aim", forecast, or "believe"
(or the negatives thereof) or other variations thereon or comparable
terminology. These forward-looking statements are based on currently available
information and our current assumptions, expectations and projections about
future events. These forward-looking statements include all matters that are
not historical facts and include statements which look forward in time or
statements regarding the Company's intentions, beliefs or current expectations
and those of our Officers, Directors and employees concerning, amongst other
things, the Company's results of operations, financial condition, changes in
global or regional trade conditions (including a downturn in the retail or
financial services industries), competitive influences, changes in tax rates,
exchange rates or interest rates, changes to customer preferences, the state
of the housing and home improvement markets, share repurchases and dividends,
capital expenditure and capital allocation, liquidity, prospects, growth and
strategies, litigation or other proceedings to which we are subject, acts of
war or terrorism worldwide, work stoppages, slowdowns or strikes, public
health crises, outbreaks of contagious disease, environmental disruption or
political volatility. By their nature, forward-looking statements are not
guarantees of future performance and are subject to future events, risks and
uncertainties - many of which are beyond our control, dependent on actions of
third-parties, or currently unknown to us - as well as potentially inaccurate
assumptions that could cause actual events or results or actual performance of
the Group to differ materially from those reflected or contemplated in such
forward-looking statements. For further information regarding risks to
Kingfisher's business, please consult the risk management section of the
Company's Annual Report (as published). No representation, warranty or other
assurance is made as to the achievement or reasonableness of, and no reliance
should be placed on, such forward-looking statements.

 

This announcement has been prepared solely to provide additional information
to shareholders to assess the Group's strategies and the potential for those
strategies to succeed. It should not be relied upon by any other party or for
any other purpose. The forward-looking statements contained in this
announcement are made in good faith based on information available to the
Directors at the time of approval. However, such statements should be treated
with caution due to the inherent uncertainties - both economic and
business-related - underlying any forward-looking information. This
announcement has been prepared for the Group as a whole and therefore places
greater emphasis on matters significant to Kingfisher plc and its subsidiary
undertakings when viewed on a consolidated basis.

 

The forward-looking statements contained in this announcement speak only as of
the date of this announcement and the Company does not undertake any
obligation to update or revise any forward-looking statement to reflect any
new information, change in circumstances, or change in the Company's
expectations to reflect events or circumstances after the date of this
announcement or to reflect the occurrence of unanticipated events.

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