B&Q owner Kingfisher has raised its annual profit outlook despite a dip in half-year sales at the DIY chain, as consumers held back from larger purchases.
The group reported that B&Q like-for-like sales in the UK and Ireland fell 1.8% in the second quarter, with sales of big-ticket items dropping 8.1%, largely due to weaker demand for bathroom ranges. However, this marked an improvement on the 4.1% decline seen in the first quarter, as heatwaves boosted demand for seasonal items.
Screwfix and UK sales performance
Screwfix continued to perform strongly, with a 7.1% jump in second-quarter sales, helping overall UK and Ireland same-store sales rise 1.6% in the second quarter and 0.4% in the first half.
Kingfisher, which also owns European home improvement brands such as Brico Depot and Castorama, reported a 9.9% rise in underlying pre-tax profits to £404 million for the six months to July 31, boosted by a one-off £14 million UK business rates refund. On a statutory basis, pre-tax profits increased 18.4% to £400 million.
Guidance upgrade and market reaction
The company increased its full-year underlying pre-tax profit guidance to between £595 million and £635 million, up from the previous £565 million to £625 million, helping shares jump 10% in morning trade on Tuesday.
Outgoing chief executive Thierry Garnier said: “While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance.”
Heatwave impact and consumer outlook
Record summer heatwaves drove demand for air conditioning, cooling products, and outdoor living ranges, but hurt sales of plants, indoor and outdoor paint, and fencing, as the heat discouraged DIY work. It also pushed customers towards online shopping, with B&Q app and internet sales rising 19.3% in the first half.
The group said it had overhauled its bathroom ranges to revive big-ticket sales, but waning consumer confidence amid high inflation and the Iran war was holding back spending. Mr Garnier described the outlook for consumer spending over the remainder of 2026 as “not fantastic” but fairly stable.
He told reporters he would like the upcoming UK Budget to see changes to the business rates system and to level the playing field between bricks and mortar retailers and online players, adding: “I hope larger stores won’t be penalised.” He said the firm was looking for greater certainty: “Stability and certainty are always what we look for as a business, and for me as well as a consumer.”
Analysts at Peel Hunt praised a solid set of half-year figures, saying: “Kingfisher is in a good place, in our view. The group has delivered growth despite a lacklustre market backdrop, especially in big ticket.”
