No surprise for investors as Kingfisher meets analysts’ expectations

As Kingfisher reports its first quarter, Graham Spooner, investment research analyst at The Share Centre, explains what they mean for investors.

“This morning, home-improvement retailer Kingfisher reported its first quarter results, highlighting a 0.8% rise in like-for-like sales. The group also noted a rise in retail profit of 1.4% at 150m.

“The company, which owns B&Q and Screwfix, operates over 1,200 stores in 11 countries based in the UK and Asia. UK and Ireland sales rose 1.6% on a like-for-like basis, whilst the company’s second biggest region, France, saw sales fall 1.2%. Within this mixed bag of news, investors should note that there are plans to improve the group. New CEO Veronique Laury has initiated the One Kingfisher program, which focuses on creating a new, internal leadership team whilst closing excess stores as more customers chose to shop online. These changes may hopefully be reflected in future figures for the company.

“Kingfisher’s shares rose 2.8% in early trading, but still remain below the level of 12 months ago. The group’s results reached expectations, and hopes are growing for the new management initiatives. We recommend Kingfisher as a ‘hold’ for medium risk investors looking to achieve a balanced portfolio.”