Kingfisher fell by 12.11% to 259.19 pence on the London Stock Exchange. The British group of DIY stores, owner of the Castorama and Brico Dépôt brands in France, recorded a 0.6% decline in its turnover in the third quarter, to 3.87 billion euros. In the United Kingdom and Ireland, sales increased by 1.2%, to 1.6 billion pounds, while they recorded a drop of 6.4% in France, to 967 million. Comparable sales were down 1.1% at constant exchange rates.
“Our business proved resilient in the third quarter. The improvement in performance observed in August and September was offset in October by the impact on consumer confidence of the budget discussions in the United Kingdom and in France”, indicates the group's general director Thierry Garnier, quoted in the press release.
Outlook-wise, if Kingfisher maintains its free cash flow target of between £410m and £460m for the 2024-25 financial year. The group is now targeting adjusted pre-tax profit of between 510 million and 540 million pounds (between 613 million and 650 million euros), compared to 510 million to 550 million pounds previously and after 568 million pounds the previous year.
For Jefferies, the downgrades will also weigh on the 2026 financial year due to
of the impact of the increase in employer national insurance contributions in the United Kingdom. He puts it at around £31 million while the impact of changes to social taxes in France is estimated at £14 million.
source: AOF
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France
