Kingfisher Q1 trading update: resilient start, but not a clean sweep
Kingfisher has started the new financial year in decent shape. The headline is that the group is still expecting to hit full-year guidance, despite a soft home improvement market and a late start to spring that hurt seasonal demand and store footfall.
That matters because this was not an easy quarter to trade through. Like-for-like sales, which compare stores open at least a year, fell by 0.9%, or 0.7% on an underlying basis once calendar effects are stripped out. That is hardly sparkling, but it is better than it might look at first glance given the weak market backdrop and a strong prior-year comparison.
Key Kingfisher Q1 numbers investors should focus on
| Metric | Q1 2026/27 |
|---|---|
| Total Group sales | £3,300 million |
| Reported sales growth | +1.4% |
| Constant currency sales growth | 0.0% |
| Like-for-like sales growth | (0.9)% |
| Underlying like-for-like sales growth | (0.7)% |
| Total sales including marketplace GMS | +0.8% |
| Marketplace GMV | £163 million, up 39% |
| Trade sales growth ex-Screwfix | +17% |
| E-commerce sales growth ex-Screwfix | +14% |
| Group trade penetration | 31% |
| Group e-commerce penetration | 22% |
| Adjusted PBT guidance | c.£565 million-£625 million |
| Free cash flow guidance | c.£450 million-£510 million |
| Share buyback | £300 million ongoing |
Trade and e-commerce growth are doing the heavy lifting for Kingfisher
The best part of this update is where the growth is coming from. Trade sales rose 17% excluding Screwfix, and e-commerce sales were up 14% excluding Screwfix. That tells you Kingfisher is not just leaning on its strongest banner – it is building broader momentum across the group.
Trade penetration reached 31%, while e-commerce penetration hit 22%. Those are meaningful numbers because they show Kingfisher is getting more sales from channels and customer groups that tend to be stickier and more scalable over time.
The marketplace business also keeps moving in the right direction. Marketplace GMV, or gross merchandise value, rose 39% to £163 million. The important detail here is that Kingfisher only records a commission of around 10-15% of that GMV as revenue, so marketplace boosts customer choice and digital reach without needing the same inventory investment as a normal retail sale.
B&Q lagged, Screwfix delivered, and that split matters
The UK and Ireland business was mixed. B&Q reported sales of £1,025 million, down 3.1% at constant currency, with like-for-like sales down 4.1%. Screwfix, by contrast, delivered £712 million of sales, up 5.4% at constant currency, with like-for-like sales up 4.1%.
That gap matters. B&Q is more exposed to seasonal categories and customer footfall, so the late spring hit it harder. Screwfix is more convenience-led and trade-focused, which helped it take significant market share gains.
B&Q was not all bad news. E-commerce sales rose 16%, marketplace GMV increased 29%, and new kitchen ranges performed well. But the pressure in bathrooms and seasonal lines shows the consumer is still cautious on bigger discretionary home projects.
Screwfix looks like the star again. Management says gains were driven by volume and transactions, helped by the app-based rewards programme, Screwfix Sprint, and Click & Collect. In simple terms, customers are finding it easy to buy, and they are coming back more often.
France and Poland were softer, but there are signs of progress underneath
France remains difficult, with the market down low single digits as consumer savings rates stay elevated. Castorama like-for-like sales fell 1.1%, while Brico Dépôt dropped 3.1%. Big-ticket demand was weak, especially in more project-led spending.
Still, there were some encouraging points. Castorama posted a third quarter of sequential improvement, e-commerce rose 8.7%, and trade penetration jumped from 1% to 8%. Brico Dépôt grew trade sales by 28%, with trade penetration now at 16%.
Poland also outperformed its market, even though like-for-like sales dipped 0.2%. Core demand grew 2.0%, e-commerce sales rose 41%, and trade sales increased 13%. Again, it is the same pattern – soft headline demand, but strategic channels improving.
Category trends show where Kingfisher is strong and where pressure remains
Looking across the group, core categories were resilient. Core like-for-like sales were up 0.6%, or 0.8% on an underlying basis. That is a good sign because core represents 65% of group sales and is less volatile than seasonal demand.
The weak spot remains big-ticket. Group big-ticket like-for-like sales fell 4.4%, reflecting subdued demand in kitchens, bathrooms and storage, especially bathrooms. Seasonal sales were also down 3.0%, mostly because colder weather delayed spring demand in the UK and Poland.
That mix explains why the quarter looks a bit untidy. The business is holding up where customers are buying essentials and smaller jobs, but larger project spending still looks patchy.
Full-year Kingfisher guidance unchanged is the main message for shareholders
The company kept its full-year outlook unchanged and said it is on track to deliver adjusted profit before tax of around £565 million to £625 million, alongside free cash flow of around £450 million to £510 million.
That is the real anchor for the investment case here. When a retailer trades through a weak market, posts negative like-for-like sales, and still keeps guidance intact, it usually means management feels comfortable on margins, costs and the second-half outlook.
Kingfisher also highlighted disciplined gross margin and cost management. That matters even more this year because net finance costs are expected to rise to around £105 million from £91 million last year, while capex is set to increase to around £400 million from £388 million.
The £300 million share buyback is another supportive point. It does not fix a weak retail market, but it does show confidence in cash generation and offers some support to shareholder returns.
What this Kingfisher RNS means for retail investors
- Positive: Kingfisher is gaining market share in key places, especially Screwfix and Poland.
- Positive: Trade, e-commerce and marketplace growth all look strong and increasingly central to the strategy.
- Positive: Full-year guidance is unchanged, and the share buyback continues.
- Negative: Like-for-like sales are still negative, and B&Q had a weak quarter.
- Negative: Big-ticket demand, particularly bathrooms, remains soft.
- Negative: The consumer backdrop is still fragile, especially in France.
My take on Kingfisher after this Q1 update
This is a better update than the headline like-for-like number suggests. It is not a booming quarter, but it does show a business that is executing sensibly in a weak market and pushing harder into the right areas.
The biggest positive is that trade and digital growth are not just buzzwords here – they are showing up in the numbers. The biggest concern is that consumer appetite for bigger home projects still looks shaky, and B&Q remains more exposed to that than Screwfix.
Overall, this feels mildly positive. Kingfisher is not flying, but it is keeping control of the things it can control, gaining share in important places, and backing its full-year outlook. For investors, that keeps the story intact: steady progress now, with a better pay-off if housing and home improvement demand eventually recover.
