Kingfisher plc (LON:KGF) has announced its half year results for the six months ended 31 July 2026 (unaudited)H1 26/27 Highlights
· Total sales including marketplace GMS* +1.6%. Underlying* LFL sales +0.3% driven by higher customer transactions. Statutory sales +0.8%(1)
– Standout performance from Screwfix with LFL +5.6%
· Market share gains(2) at Screwfix, Poland and Spain. Castorama France and B&Q held share. Brico Dépôt France performance impacted by heatwaves due to category mix
· Strong momentum across trade, e-commerce and marketplace
– Trade sales growth* +16% ex-Screwfix. Group trade sales penetration* increased to 31% (+3pts)
– E-commerce sales* growth +16% ex-Screwfix. Group e-commerce penetration* reached 22% (+2pts)
– Marketplace GMV* up +42% to £372m, with profit contribution(3) £13.4m (H1 25/26: £7m)
· Adjusted PBT +9.9%(1) to £404m, driven by gross margin expansion +70bps, disciplined cost control and a £14m one-off business rates refund. Statutory PBT +18.4% to £400m
· Adjusted EPS up +16.1% to 17.8p(1), supported by profit growth and share buybacks
· £339m free cash flow delivered
· Announcing interim dividend of 3.8p
Upgrading FY 26/27 Guidance(4)
· Adjusted PBT of £595m-£635m (previously £565m-£625m) and free cash flow of £480m-£520m (previously £450m-£510m)
· £300m share buyback ongoing, £125m purchased to date, commencing third tranche of £50m this week
Thierry Garnier, Chief Executive Officer, said:
“We delivered a solid H1 performance, growing sales, gross margin and profits through market share gains and continued momentum across trade, e-commerce, marketplace and group sourcing. We are building a stronger, more resilient Kingfisher, with our strategic priorities creating new growth opportunities and strong financial discipline supporting performance across the business. While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”
| Key metrics* | 2026/27 | 2025/26 | % change reported | % change cc** |
| LFL sales | +0.1% | |||
| Total GMS | £7,107m | £6,928m | +2.6% | +1.6% |
| Gross profit | £2,634m | £2,569m | +2.6% | +1.7% |
| Gross margin % | 38.4% | 37.7% | +70bps | +70bps |
| Retail profit | £489m | £452m | +8.2% | +7.5% |
| Retail profit margin % | 7.1% | 6.6% | +50bps | +50bps |
| Adjusted pre-tax profit (PBT) | £404m | £368m | +9.9% | +8.9% |
| Adjusted basic EPS | 17.8p | 15.3p | 16.1% | |
| Free cash flow | £339m | £478m | (29.1)% | |
| Net leverage | 1.4x | 1.3x | ||
| Statutory measures | ||||
| Total sales | £6,864m | £6,811m | +0.8% | (0.2)% |
| Operating profit | £449m | £383m | +17.6% | |
| Pre-tax profit (PBT) | £400m | £338m | +18.4% | |
| Basic EPS | 17.3p | 13.4p | +29.5% | |
| Net cash flows from operating activities | £726m | £928m | (21.8)% | |
| Interim dividend per share | 3.80p | 3.80p | – |
*See section 6 for footnotes and glossary **constant currency
Note: All commentary below is in constant currency unless otherwise stated.
Financial highlights
Sales
· Total sales including marketplace GMS +1.6% driven by continued momentum in strategic growth drivers
· Strong growth at Screwfix, Poland and Iberia, driven by trade, and e-commerce initiatives, product innovation and seasonal categories, partly offset by lower sales at B&Q and Brico Dépôt France
· Market share gains* at Screwfix, TradePoint, Castorama Poland and Spain. Castorama France returned to growth in Q2 and performed broadly in line with its market in the half. B&Q broadly in line with the market. Brico Dépôt France impacted by heatwaves due to category mix
· LFL sales growth of +0.1% and +0.8% space growth, partly offset by (0.2)% impact from converting two Castorama France stores to franchises
Gross margin and cost
· Gross margin expansion of +70 basis points to 38.4%, driven by Kingfisher’s buying and sourcing scale, growth from marketplace, retail media, FX tailwinds and the sale of Romania, partly offset by headwinds from freight and a growing share of trade
· Operating costs increased +0.4%, reflecting the impact of new store openings and higher staff pay rates including two months of increased UK employer National Insurance contributions. These increases were partly offset by structural cost reductions and a £14m one-off business rates refund in the UK
Pre-tax profit
· Adjusted PBT +9.9%(1) growth to £404m driven by gross margin expansion of +70bps and disciplined cost control. Excluding the one-off £14m UK business rates refund, adjusted PBT increased +6.1%
· Retail profit +7.5% to £489m(1), with retail profit margin of 7.1% +50bps
· Statutory PBT +18.4% to £400m (H1 25/26: £338m), with the prior year including a £31m loss related to the disposal of Romania included in adjusting items
· Adjusted EPS +16.1% to 17.8p(1), reflecting profit growth and the ongoing share buyback programme. Statutory basic EPS was up +29.5% to 17.3p
Free cash flow
· £339m free cash flow delivered, underpinned by 2 days stock improvement
· Gross capital expenditure of £171m, reflecting investment in new stores, new ranges to support growth, technology and store maintenance
· Interim dividend maintained at 3.8 pence per share
FY 26/27 guidance(4)
· Adjusted PBT in the range of approximately £595m-£635m (previously £565m-£625m)
· Free cash flow in the range of approximately £480-£520m (previously £450m-£510m)
Key assumptions
· Space: sales impact of c.+1%, mainly from Screwfix UK & Ireland, B&Q and Castorama Poland
· Net finance costs: c.£105m (FY 25/26: £91m)
· Adjusted effective tax rate: c.26% (FY 25/26: 26%)
· Capex: c.£400m (FY 25/26: £388m)
· £13m non-recurring 2025/26 losses(5)
Share buyback
In line with our capital allocation policy, in March 2026 the Board determined that a further £300m of surplus capital was available to return to shareholders via a share buyback programme. Two tranches totalling £125m have been completed. The third tranche of £50m is commencing this week and expected to be completed by December.
Non-GAAP measures and other terms
Throughout this release * indicates the first instance of a term defined and explained in the Glossary (Section 6). Not all the figures and ratios used are readily available from the condensed financial statements included in Section 4 of this announcement. Management believes that these non-GAAP measures (Alternative Performance Measures), including adjusted profit measures, constant currency, like-for-like (LFL) sales growth and total sales including gross merchandise sales, are useful and necessary to assist the understanding of Kingfisher’s results. Where required, a reconciliation to statutory amounts is set out in the Financial Review (Section 3).
