Kingfisher profit drops as ‘big ticket’ demand weakens

Adjusted profits before tax were £528m on sales of £12.8bn in the year to January 31, with revenue down 1.7% in like-for-like terms on 2023-24. Despite this, the retailer grew its market share in all its major regions.

“As expected, the wider market backdrop was a headwind,” said chief executive Thierry Garnier, “though we maintained our laser focus on managing costs and cash, removing £120m of structural costs and lowering same-store inventory by over £100m.”

Big-ticket sales declined by 4.4%, which the company said reflected weaker trends across the broader market. Seasonal sales also declined by 2.5%, with bad weather in Q2 cited as a factor.

The brand announced guidance of £480m to £540m in profit before tax for 2025/26, despite citing the increased costs that governments have placed on the sector.

“Looking to the year ahead, the recent government budgets in the UK and France have raised costs for retailers and impacted consumer sentiment in the near term,” said Garnier.

“With this in mind, we remain focused on what is in our control – progressing our strategic objectives at pace to deliver further market share gains, and continuing to manage gross margin, costs and cash effectively. Kingfisher is in its best operational shape for years, and we remain confident about the growth opportunities in our business.”