Shares in Kingfisher (LON:KGF) have fallen deep into the red in London this morning, as the B&Q owner posted a small rise in quarterly profits as downbeat performance in France continued to weigh on the group’s overall performance. The company meanwhile reaffirmed its full-year expectations.
As of 09:26 BST, Kingfisher’s share price had given up 2.94 percent to 234.70p, pressuring the benchmark FTSE 100 index which currently stands 0.07 percent higher at 7,246.30 points. The group’s shares have given up more than 18 percent of their value over the past year, as compared with about a 6.2-percent fall in the Footsie.
Kingfisher posts HY results
Kingfisher announced in a statement this morning that its like-for-like (LFL) sales had grown 0.8 percent to £2.84 billion in the quarter to April 30. The group reported strong performance in the UK and Ireland where LFL sales had grown 3.4 percent during the reported period, which, however, was partly offset by downbeat results in France where LFL sales fell 3.7 percent.
“Screwfix, Poland and Romania delivered good sales growth while our performance in France was mixed within the quarter,” the group’s outgoing chief executive Véronique Laury commented in the statement. “At this early stage of the year our expectations for the full year are unchanged, and we remain confident in our ability to deliver significant financial benefits over time.”
Analysts on FTSE 100 retailer
UBS reaffirmed the DIY retailer as a ‘sell’ this month, without specifying a target on the Kingfisher share price. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 241.25p.
RBC lifted its price target on the stock last month, as it increased its fiscal year 2020-21 pre-tax profit forecasts for Kingfisher due to recent stronger-than-expected industry data for France and the UK.