Shares in Kingfisher PLC (LSE:KGF) rose 5% to 307p to top the FTSE 100 on Tuesday morning, as the B&Q and Screwfix owner reported a smaller-than-expected sales decline in the first quarter and said it remains on track to meet full-year guidance.
The DIY retailer, which also owns Castorama and Brico Dépôt in France, reported underlying like-for-like sales down 0.7% in the three months to 30 April, while total sales rose 1.4% to £3.3 billion. Sales including marketplace gross merchandise value increased 0.8%.
Chief executive Thierry Garnier called it a "resilient start.. gaining market share against a soft market backdrop... even as a late start to spring impacted footfall and seasonal demand".
Screwfix continued to outperform, with like-for-like sales up 4.1% as the chain grabbed a larger market share in the UK and Ireland.
B&Q sales fell 4.1%, with the group blaming poor weather for reducing footfall and demand for outdoor products. Big-ticket sales remained under pressure, particularly in bathrooms, although new kitchen ranges performed strongly.
France saw like-for-like sales recede 2.1% as higher savings rates and a subdued home improvement market weighed on demand. Poland was broadly flat, while Iberia delivered growth of 6.6%.
Trade and online sales remained bright spots. Trade sales excluding Screwfix rose 17%, while e-commerce sales excluding Screwfix increased 14%.
Garnier said: "While mindful of the consumer environment, we remain absolutely focused on delivering our strategy, disciplined gross margin and cost management, and consistent shareholder returns.
"We are confident in achieving our full-year guidance and are well positioned to capitalise on the attractive long-term growth opportunities across our markets."
Kingfisher reiterated guidance for adjusted pre-tax profit of £565-625 million for the year to January 2027.
Broker Peel Hunt hailed the good performances against the market at Screwfix and in Poland, while also noting that B&Q's drop was against a strong comparative period last year.
Analysts at Jefferies said group LFL sales were in line with the City consensus, "underpinned by a better-than-expected UK performance (-0.9% vs. cons. -2%), offset by weaker trends in France (-2% vs. cons c.-1%) and Poland (-0.2% vs. cons +1.6%)".
Within the UK, growth for Screwfix contrasted with B&Q's decline, "reflecting a divergence driven largely by weather impacts: Screwfix’s largely indoor, trade-led exposure (e.g. electrical and plumbing) proved more resilient compared to B&Q’s greater exposure to outdoor projects. This dynamic is consistent with wider sector trends, with peers having also highlighting weather-related headwinds across outdoor categories."
Richard Hunter, head of markets at Interactive Investor said it was a “mixed showing although there are some extenuating circumstances such as a late start to spring which impacted footfall, and some strong comparatives".
He said Kingfisher has "had a number of false starts over recent times, with generally pedestrian rather than transformational progress. This update is no exception... the share price reflects a glass half-full reaction."
Performances in the overseas operations were "more promising" after years of "economic indifference".
He flagged that challenges remain, such as increased taxes in both the UK and France, with the war in the Middle East also pushing energy costs higher and possibly leading consumers to retrench.
** UPDATE: Adds share price and broker comments **