Deutsche Bank reiterated its “sell” rating on Kingfisher PLC (LSE:KGF) after the DIY retailer reported first-quarter sales broadly in line with expectations and maintained full-year guidance.
The B&Q and Screwfix owner said it still expects adjusted pre-tax profit of £565 million to £625 million for the 2026 financial year, compared with market forecasts of £589 million.
Analyst Adam Cochrane said the update was largely as expected after investors had worried about seasonal weakness in the UK and Poland as well as softer demand for higher-ticket home improvement spending.
UK like-for-like sales fell 0.9% in the quarter, ahead of consensus forecasts for a 1.8% decline, helped by another solid performance from Screwfix where sales rose 4.1% against expectations for 2% growth.
B&Q sales fell 4.1%, in line with forecasts.
However, France and Poland both underperformed expectations, with French like-for-like sales down 2.1% and Poland slipping 0.2%.
Cochrane said there had been “no material change” in trading patterns since the fourth quarter and no meaningful deterioration in consumer confidence since March.
He added that management would likely want to see trading through the key summer season before changing guidance.
Despite the steadier-than-feared first quarter, Deutsche Ban's 260p price target was maintained on the shares, below Kingfisher’s latest market price of 297.2p.