(AOF) – Kingfisher gained 2.6% to 253.2 pence, supported by the less marked decline than expected in its sales in the first quarter of 2022 and by the confirmation of its annual objectives. The trend observed in the United States has crossed the Atlantic. Consumers are turning away from durable consumer goods (televisions, etc.) in favor of tourism and DIY. Since the pandemic, households have been looking in particular to improve their habitat and some are even building individual houses. A godsend for the owner of Castorama and Brico Dépôt.
In the first quarter of 2022, Kingfisher’s like-for-like sales were down 5.4%. Analysts had expected a drop of 8%. Over three years, i.e. before the pandemic, sales posted a gain of 16.2%.
Moreover, the dynamic is encouraging for the current quarter. Like-for-like sales over the 15-day period ended May 14 fell only 2.5%. Compared to 2019, they jumped by 21.8%.
In its press release, Kingfisher claims to effectively manage inflationary pressures and the supply chain, with product availability very close to pre-pandemic levels in all brands.
On the strength of its performance, the group confirmed its 2022/2023 target of an adjusted pre-tax profit of around 770 million pounds.
Finally, the company announced a new £300 million share buyback program.
In the wake of this publication, UBS confirmed its Neutral opinion and its price target of 338 pence.