The FTSE 100-listed retail company Kingfisher PLC’s (GB:KGF) share price fell by over 7% today after the company reported disappointing sales figures in the first half results for FY23. The company also revised its annual pre-tax profit forecast, lowering it from £634 million to £590 million, citing the prevailing weaker trading conditions in markets like France and Poland.
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Post-results, the Kingfisher share price faced downward pressures and is currently trading down by 7.7% on Tuesday.
Kingfisher PLC is a retail company based in the UK that provides home improvement and décor products in around eight countries in Europe. The company owns brands like B&Q, Castorama, Screwfix, TradePoint, etc.
First-Half Results Summary
For the first half of FY23, which ended on July 31, 2023, the company’s like-for-like sales declined by 2.2% to £6.88 billion. While regions like Poland and France experienced weaker performance, the UK and Ireland posted better sales and profit numbers. The company’s sales were better than expected but were hit by the seasonality of operations and macroeconomic challenges.
The group’s pre-tax profit decreased by 28.8% to £336 million, compared to £472 million in H1 2022. Among its various regions, Poland experienced a substantial 64% decline in retail profit, with Iberia following closely with a 50% drop. In comparison, the company’s UK and Ireland business saw a more modest 9.8% decrease in its retail profit.
On the positive front, the e-commerce segment posted a 7% increase in sales. E-commerce will continue to remain a priority for the company moving forward. Kingfisher also announced a £300 million share buyback plan, starting in October 2023. Prior to this, the company completed a buyback plan of £600 million over the last two years.
What is the Stock Price Forecast for Kingfisher PLC?
On TipRanks, KGF stock has received a Hold rating based on a total of five recommendations from analysts, including two Buy, one Hold, and two Sell ratings. The Kingfisher share price target is 269p, which implies an upside of 23.5% in the share price.
