Kingfisher PLC (LSE:KGF) shares rose 2% to 302.8p as the FTSE 100 retailer rewarded investors with a fresh share buyback programme after increasing annual profits 6% last year on a small increase in sales.
The operator of the B&Q and Screwfix chains reported adjusted profits of £560 million in the year to 31 January 2026, above the middle of the guidance range of £540-570 million set out in November, driven by stronger sales volumes, wider profit margins and tight cost control.
Total sales came in at just under £13 billion, up 1.3% or virtually flat on a constant currency basis due to an exit from Romania.
Like-for-like sales rose 1.4%, with the UK leading the way. B&Q posted LFL sales growth of 3.3% and Screwfix 3.2%, with both brands gaining market share alongside French and Spanish operations.
Chief executive Thierry Garnier hailed the combination of "significant market share gains, profit growth and strong free cash flow".
Trade customers – professional builders and contractors rather than DIY shoppers – now account for 30% of group sales, up sharply, while online sales rose 20% and represent a fifth of total revenue.
After completing a £300 million share buyback, Kingfisher has launched a new buyback of the same size and announced a full-year dividend of 12.4p per share, also the same as last year.
For the year ahead, the group is guiding for adjusted profit of £565–625 million and free cash flow of £450-£510 million.
Garnier described the current backdrop as "a mixed consumer environment across our markets", and said the group would "continue to focus on delivering our strategic priorities, maintaining cost discipline and driving shareholder returns. This positions us well to capitalise on the attractive long-term structural growth opportunities within our markets."
Broker Peel Hunt said the results were broadly in line with forecasts, with guidance for the new year also in line with the current consensus, though the new buyback was £100 million higher than it had forecast.
Market analyst Richard Hunter at Interactive Investor said: "The results are something of a curate’s egg, with strong UK performances being partly offset by some ongoing international weakness."
He noted the group's moves to consolidate some of its stronger positions. "Quite apart from the ongoing efficiencies being found within the business, which resulted in an improved gross margin of 38.1% versus a previous 37.3%, [own brand] sales now account for 43% of overall revenue, flanked by stronger showings from both trade sales and e-commerce, which grew by 12% and 11% respectively over the year.
"Nonetheless, challenges remain. Increased taxes in both the UK and France are a burden on the group, while big ticket and seasonal sales expose Kingfisher to both cyclical pressure via housing markets as well as unpredictable weather. In addition, the current conflict in Iran threatens to push energy costs higher, while the consumer could also retrench, quite apart from the fact that the housing market is yet to show any signs of a sustained recovery. As a result, the shares have fallen by 16.5% over the last month, undoing much of the progress which had more recently been made."
** UPDATE: Adds share price, broker comments **