Kingfisher Share Discussion Threads

[ayl30] 15/9/2015 08:41

Fin Times comment
Kingfisher may be in the mood for expansion but its shareholders are retrenching slightly on Tuesday morning after the London-listed DIY retailer, which owns B&Q in Britain and Castorama in France, reported a 1.8 per cent drop in first half profit.

Kingfisher was the biggest faller on the FTSE 100 at publication time, down 2 per cent to 353p, despite its new chief executive, Véronique Laury, striking an upbeat tone over Kingfisher's future as it seeks to tap into the "do it for me" trend, as homeowners turn to tradesmen to carry out jobs for them rather than doing it themselves. Kingfisher earlier announced it was looking at opening another 200 stores under its Screwfix brand that supplies materials to tradesmen.

Statutory pre-tax profit at the retailer, which Ms Laury is in the process of trying to overhaul, fell 1.8 per cent to £386m in the half year to August 1. On the company's preferred adjusted measure, profit fell 2.3 per cent to £384m.

Cantor Fitzegerald analyst, Freddie George, said the make-up of Kingfisher's results was a "surprise", with the UK business outperforming expectations (like for like sales at the unit rose 3.3 per cent in the half year while retail profit jumped 16.8 per cent to £194m) but France disappointed. In France, like for like sales edged down 0.3 per cent while retail profit dropped 5.7 per cent to £167m.

[cockneyrebel] 15/9/2015 07:46

UK + Ireland profit rise of 16%. The Euro issue won't last forever and when it turns KGF become much more profitable imo.

A lot of good changes kick in from 2016 too imo.

All imo

CR

[alphahunter] 15/9/2015 07:39

Part 1, quite a punchy statement.

[ed 123] 11/9/2015 10:57

Yes, Homebase result was encouraging.

Screwfix should be moving ahead nicely and France static. It's what's happening at B&Q that I'll watch for.

[cockneyrebel] 11/9/2015 10:41

*UBS RAISES KINGFISHER TO 'BUY' ('NEUTRAL') - TARGET 400 (360) PENCE

Results on Tuesday

CR

[alphahunter] 08/9/2015 21:20

I'm looking at M. Bricol age, they are reporting tomorrow after close.
Excellent weather on the continent in July - August, easier comparables, no Chinese non-sense.
Market for DIY still tough in France (prop market not moving, all incentives towards new development).

Fading and tired concept, trades below book and 20% below KFG's €15 take out price, lowly 9x eps, 0-2% organic growth max currently, decent dividend. Could get to book value if there is a whiff of margin improvement.

Shame KFG couldn't get hold of it, change the Mgt team and turn it around.

[cockneyrebel] 27/8/2015 08:43

Retail sales bounced back in August thanks to summer clothes and supermarket sales, says CBI survey

CR

[muffinhead] 24/8/2015 16:23

havin' another look

[cockneyrebel] 19/8/2015 11:21

Intra-day reversal.

CR

[cockneyrebel] 13/8/2015 08:41

Cheers cestnous

CR

[cestnous] 13/8/2015 08:34

"Shares" today
While DIY in Britain appears to be losing its
appeal, improved disposable income still presents
a tailwind for B&Q, owned by Kingfisher (KGF).
Though many analysts are bearish on the story,
given weak consumer spend in Europe and the
dwindling DIY skill-set of millenials, we see
reasons to be positive. The home improvement
giant behind brands including Screwfix, B&Q and
Castorama is worth pocketing for its turnaround
potential and bumper capital returns.
New CEO Veronique Laury has embarked on
a radical plan to turn around Kingfisher, whose
Brico Depot and Castorama chains are exposed
to difficult French housing and construction
markets. She is reorganising the retailer
very differently under her ‘ONE’ Kingfisher
initiative; the plan is to better integrate a batch
of locally-managed businesses, drive through
efficiencies and make changes to a sprawling
global management structure, while B&Q is
being downsized. An update on progress against
Laury’s first ‘sharp’ decisions alongside next
month’s interims (15 Sep) offers a potential
upside catalyst.
Albeit lapping soft comparatives and with a
weather boost from seasonal lines, Kingfisher’s
second quarter update (23 Jul) flagged a healthy
improvement in trading over the 10 weeks to 11
July. Group like-for-like sales grew 3.5%, with
like-for-like sales at B&Q UK & Ireland up 3.4%
and same-store sales skipping 16.7% higher at
Screwfix. Over in France, like-for-like revenues
were in positive territory at both Bricot Depot and
Castorama too. Despite currency headwinds and
pressure on margins, Kingfisher has a strong free
cash flow profile. Besides a progressive shareholder
reward, the retailer has already returned £138
million to shareholders, part of a proposed £200
million buyback, since the year end.

[cockneyrebel] 13/8/2015 08:25

Testing the recent resistance - a lower Chinese currency is a plus imo.

CR

[cockneyrebel] 11/8/2015 11:21

Cheaper chinese currency, lots of cheaper products and better margins for Screwfix chinese made tools imo.

CR

[cockneyrebel] 11/8/2015 10:54

This ants to break that resistance and rally imo - one firm market day and we're away imo.

All imo

CR

[cockneyrebel] 07/8/2015 08:12

Might get a bit interesting here soon imo:


free stock charts from uk.advfn.com

[cockneyrebel] 06/8/2015 13:02

Chart starting to look a bit good imo.

CR

[cockneyrebel] 05/8/2015 14:48

Looking a bit good here imo - setting up for a new uptrend?

CR

[cockneyrebel] 04/8/2015 09:17

Outsourcing all logistics to Wincanton for B&Q .

Will prove to be a good move imo.

Are these the next GRG/CPR/MTC type retail recovery play? Brokers tweaking up forecasts and looking good value with that 3% yield going forward too imo. Come in a bit ahead, growth looks stronger than expected and then that PE looks one of the lowest in the retail sector for decent growth perhaps?

time will tell.

All imo

CR

[mike740] 30/7/2015 16:55

B@Q the fly in the ointment.

Until they get that sorted Id leave well alone.

[ed 123] 24/7/2015 09:28

Mike740.

Yes, these three are looking like they've got it wrong.

The China slowdown is an issue globally and the Eurozone is stuttering around the bottom. So far though, these negatives have not been of sufficient magnitude to take the FTSE100 down very much. Even in this climate, Kingfisher is holding above 350p. If macro conditions do worsen, then I suppose 275-300p is possible - but governments will give more support to their economies if they fear a slide.

On the other hand, if macro conditions improve, then Kingfisher's trading should improve. In such a scenario, the operational gearing, plus possible currency gains, should see the share price rise further from its current level. 600p in three years time?

[mike740] 24/7/2015 08:36

24 Jul 2015 Kingfisher PLC KGF Barclays Capital Underweight 372.30 374.40 285.00 285.00 Reiterates

[mike740] 23/7/2015 09:29

23 Jul 2015 Kingfisher PLC KGF Espirito Santo Execution Noble Sell 372.00 367.00 270.00 270.00 Reiterates