Barclays Upgrades Kingfisher#
Barclays has recently upgraded Kingfisher Plc from an 'underweight' rating to 'equal weight.' This change comes as the home improvement retailer experiences growth in trade and marketplace sales. However, Barclays has lowered its price target for Kingfisher from 330p to 300p, which is still slightly above the recent closing price of 293p.
Earnings Forecast Adjustments#
The brokerage has also revised its earnings per share (EPS) forecasts down by 4-6%. For the fiscal years 2026 and 2027, Barclays estimates Kingfisher's pre-tax profit at £580 million, which is at the lower end of the company's own guidance range of £565-625 million. This EPS estimate is also 2-3% below the Bloomberg consensus of £587 million.
Marketplace Growth and Trade Sales#
Kingfisher's marketplace business has shown significant growth, with group gross merchandise value (GMV) reaching £518 million in the fiscal year 2025/26, marking a 58% increase. B&Q, one of Kingfisher's brands, contributed £15 million in retail profit, while other regions like Castorama France and Iberia have reached break-even. Trade sales, which include sales from Screwfix, accounted for £3.9 billion, representing 30% of group sales.
Store Performance and Future Targets#
In terms of store productivity, Brico Dépôt Iberia leads with sales densities 30% above pre-pandemic levels. Kingfisher aims for a medium-term target of £5 billion in trade sales, which is about 30% higher than the levels recorded in FY25/26. However, Poland has seen the largest decline in retail profit margins, down 5.6 percentage points from pre-pandemic levels, highlighting some of the challenges the company faces in different markets.