Shares in Kingfisher jumped 9% to 331p on Tuesday after the DIY group raised its full-year guidance, making it one of the biggest risers on the FTSE 100.
The owner of B&Q and Screwfix lifted its forecasts for adjusted pre-tax profit and free cash flow by around 5%, driven largely by a wider gross margin.
Gross margin expanded by 70 basis points in the first half, helping adjusted pre-tax profit rise 10% to £404 million and adjusted earnings per share climb 16% to 17.8p.
Analysts at Peel Hunt, the broker, welcomed the numbers, keeping an "add" rating and a 350p price target.
The firm pointed to steady progress on strategy, with trade sales up 16% excluding Screwfix and now 31% of the total, and e-commerce also 16% higher.
Screwfix delivered like-for-like growth of 5.6%, while the group's online marketplace grew gross merchandise value 42% and nearly doubled its profit contribution to £13.4 million.
The upgrade lifts guidance for adjusted pre-tax profit to between £595 million and £635 million, from £565 million to £625 million previously.
Tuesday's jump leaves the shares higher over the year, having earlier been held back by a lacklustre home improvement market.
Peel Hunt noted that Kingfisher was still delivering growth despite weak demand for big-ticket items, which fell 4.5% in the half.
Before the rise the stock traded on about 11.5 times next year's earnings, with a free cash flow yield of around 9%.
