Kingfisher share price dips as group posts HY results
Kingfisher’s (LON:KGF) share price has fallen deep into the red this Wednesday as the DIY retailer posted a fall in sales and profits for the six months to July 31. The update comes as former Carrefour executive Thierry Garnier prepares to take the top job at the company later this month.
As of 09:00 BST, Kingfisher’s share price had given up 2.38 percent to 196.70p. The shares are underperforming the broader UK market, with the benchmark FTSE 100 index having climbed marginally into positive territory and currently standing 0.04 percent higher at 7,323.63 points.
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Kingfisher posts Q3 results
Kingfisher announced in a statement this morning that its total sales had fallen 0.9 percent to £5.98 billion in the first six months of its financial year, with like-for-like sales down 1.8 percent. The retailer explained that growth in Screwfix, Poland and Romania was offset by underperformance at its B&Q and France businesses. Retail profit meanwhile dipped 4.8 percent to £466 million, while underlying pre-tax profit came in 6.4 percent lower at £353 million.
Going forward, Kingfisher cautioned that its outlook by geography remained mixed, and pointed to continued uncertainty around consumer demand in the UK.
Upcoming change at the top
Kingfisher confirmed in today’s statement that its new CEO Thierry Garnier will take the reins on September 25, replacing Véronique Laury.
“In Thierry Garnier, who joins Kingfisher next week, we have found the right individual with the right skills and experience to build on the platform that we are establishing,” the group’s chairman Andy Cosseltt commented in the statement, adding that in the near term, the retailer’s “focus will be on improving execution and delivering on our key priorities for the year”.
According to MarketBeat, the DIY retailer currently has a consensus ‘hold’ rating, while the average target on the Kingfisher share price stands at 227.14p.