Kingfisher shares tumble after DIY retailer slashes full-year revenue outlook

Kingfisher shares tumble after DIY retailer slashes full-year revenue outlook
Kingfisher shares tumble after DIY retailer slashes full-year revenue outlook

By Scott Kanowski

Investing.com — Kingfisher PLC (LON:KGF) narrowed its expected annual revenue range slightly, citing the impact of additional investment in its France operations, higher salaries and high expenses.

In a statement, the UK company behind home improvement retailers such as B&Q and Screwfix said it now expects pre-tax income for the full year to be between around £730 and £760. million, down from a previous range of £730-770 million.

“This includes additional P&L investments to bolster our plan to open Screwfix France stores, additional salary support for colleagues and slightly higher energy costs,” Kingfisher said.

Meanwhile, losses from its Screwfix International, NeedHelp and other franchise deals are now expected to be around £35million in Kingfisher’s 2022/23 financial year.

Kingfisher added that he remained “mindful” of the current macroeconomic uncertainty, vowing to manage the pressures of soaring inflation and control costs.

In a note to clients, Jefferies analysts said the “slight reduction” in Kingfisher’s full-year revenue forecast was “a bit surprising.”

But they pointed to the group’s third-quarter revenue rise of 0.6% year-on-year to £3.26bn as a sign of underlying resilience in customer demand, particularly in key markets. like the UK and France, despite an increase in the cost of living.

Kingfisher managing director Thierry Garnier noted that sales are being supported by “new industry trends such as working from home, a marked increase in customer investment in energy savings and efficiency” .

The company’s shares fell mid-morning on Thursday.

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