Kingfisher PLC (LSE:KGF) shares have rallied recently and that good run could continue if teh B&Q owner shows some improvement in France at next week’s interims.
Deutsche Bank expects half-year sales to drop 0.4% to £6.85 billion with a pre-tax profit of £264m, down 22%.
Sales in B&Q and Screwfix in the UK are expected to be up alongside good growth in Poland, but France is forecast to be down by almost 7%.
“Investors are looking for evidence that the increased consumer confidence seen in the UK is feeding into increased planning and purchases of small and large ticket DIY spend,” says Deutsche Bank.
“The B&Q marketplace has proven to be very popular and this has been extended into France.”
In France, the market data remains negative but is seeing an improving trend, it adds.
The valuation has stepped up largely due to investors wanting increased exposure to the improvement in consumer confidence and the expected UK housing market pick up.
“This needs to start coming through in the sales performance in our view.”
Current company guidance for the full year 2025 is profits of £490-550 million with the third quarter to show an improvement.