By Christian Moess Laursen
Home improvement retailer, Kingfisher, has adjusted its fiscal 2024 guidance following a decline in pretax profit for the first half of the fiscal year ending Jan. 31. The company also announced a share buyback of £300 million ($371.6 million).
According to Kingfisher, pretax profit dropped to £317 million in the half-year period ending in July, compared to £447 million in the same period a year ago. This missed market expectations of £355.8 million, as reported by Visible Alpha consensus. The primary reason for this decline was weaker sales performance in Poland, although sales in the U.K & Ireland and France surpassed expectations.
Adjusted pretax profit fell to £336 million from £472 million, exceeding the company’s compiled consensus of £359 million. However, revenue increased to £6.88 billion from £6.81 billion.
As a result of the profit decline, Kingfisher revised its outlook for adjusted pretax profit for the full fiscal year. It now expects a profit of £590 million instead of the previously projected £634 million.
While acknowledging the challenges faced, Kingfisher’s Chief Executive, Thierry Garnier, remains confident about the long-term growth prospects for the home improvement industry in their markets.
In addition to these adjustments, Kingfisher maintained a stable dividend of 3.8 pence and initiated a share buyback program worth £300 million, effective immediately.