Kingfisher plc Q2 2027 Earnings Recap

Kingfisher’s shares rose 10.9% after it upgraded full-year guidance, backed by 9.9% growth in adjusted profit before tax and gross margin expansion. Growth was uneven: Screwfix, Poland and Iberia performed well, while big-ticket demand remained weak and Brico Depot declined.

Key Takeaways

• Sales, including Marketplace GMS, grew 1.6%; adjusted profit before tax rose 9.9% to £404 million. Excluding a £14 million UK business rates refund, profit growth was 6.1%.
• Adjusted EPS increased 16%, supported by profit growth and the share buyback; free cash flow was £339 million and net leverage was 1.4x.
• Screwfix UK like-for-like sales grew 5.6%, significantly outperforming its market. Poland sales rose 3.6% and retail profit 15.7%; Iberia like-for-like sales grew 7.7%.
• Weakness persisted in big-ticket categories, particularly bathrooms. Brico Depot like-for-like sales fell 4.2%, affected by softer building-materials demand and temporary website disruption.
• Management cited £48 million of operating-cost inflation, more than offset by gross margin gains and structural cost reductions.