Kingfisher raises full-year profit target on Screwfix strength

Kingfisher has lifted its full-year adjusted pretax profit outlook to a range of £595 million to £635 million, up from the previous £565 million to £625 million, following a stronger-than-expected first half. The home-improvement group also increased its free-cash-flow guidance to £480 million to £520 million from £450 million to £510 million. Kingfisher shares jumped approximately 9% after the announcement.

The upgrade was driven largely by the performance of Screwfix, which reported like-for-like sales growth of 5.6% in the six months to July. This increase was fueled by higher volumes, increased spending from trade customers, and continued market-share gains that offset softer demand in other parts of the business. Trade customers now represent 74% of Screwfix sales, shifting the chain’s exposure toward professional builders, plumbers, and electricians whose purchasing habits are more frequent and less discretionary than those of standard DIY shoppers.

Group-wide, adjusted pretax profit rose 9.9% to £404 million in the first half, while statutory sales increased 0.8% to £6.86 billion. Underlying like-for-like sales edged up 0.3%. Profitability improved faster than revenue, with gross margin expanding by 70 basis points due to sourcing gains, marketplace growth, and disciplined cost management. A £14 million refund of UK business rates also contributed to the first-half result.

Digital channels played a significant role in the results. E-commerce penetration at Screwfix reached 60%, and app sales increased 18%, supported by stronger loyalty-program usage and a broader range of branded products. Across the wider group, e-commerce sales excluding Screwfix rose 16%, while marketplace gross merchandise value jumped 42% to £372 million, contributing £13.4 million in profit. This marketplace model allows Kingfisher to expand product availability without carrying all associated inventory, reducing reliance on additional stock or warehouse capacity.

Despite the overall upgrade, trading remains uneven across the portfolio. In France, weak consumer confidence and softer demand for larger renovation projects continue to weigh on performance, particularly for Brico Dépôt and Castorama. B&Q also faces pressure in some larger-ticket categories such as bathrooms and kitchens, where households remain cautious due to expensive borrowing and higher energy bills.

Kingfisher is continuing to push trade customers across its other banners. Trade sales excluding Screwfix grew 16% in the half, lifting group trade penetration to 31%. Management views professional customers as a means to generate more frequent and predictable purchases. Investors will watch whether Screwfix can maintain mid-single-digit growth as comparisons become tougher and whether Kingfisher can continue converting digital growth into higher profits rather than just volume.

Leadership changes are also on the horizon as chief executive Thierry Garnier prepares to leave for Ahold Delhaize. His successor will inherit a business where the overall DIY market remains challenging, but where Screwfix, trade sales, digital channels, and improved margins are providing momentum for the upgraded profit outlook.