FTSE 100 movers: Kingfisher down 11% after profit warning

Kingfisher

253.90p

16:45 18/12/24

0.47%

1.20p

Kingfisher lost more than a tenth of its market value on Tuesday after the DIY retail conglomerate warned shareholders that it would have to scale back profit guidance this year.

The company, which owns B&Q and Screwfix in the UK along with a host of other DIY brands across Europe, said full-year adjusted profit before tax is now likely to be in the region of £590m, down from a previous target of £634m and significantly lower than the £758m reported a year earlier. The group cited worsening conditions in Poland as well as continued struggles in France.

Not even the announcement of a £300m new share buyback programme could please the market, with shares down 11% at 209.9p in afternoon trade – its lowest level in nearly a year.

"Despite an accelerated transformation which was required due to the pandemic, Kingfisher remains a work in progress," said Richard Hunter, head of markets at Interactive Investor.

"The uncertain economic outlook in its main markets is a particular concern, where for example in France consumer confidence is at a 10-year low. The main UK and Ireland market clearly has its own challenges in what is likely still a rising interest rate environment, let alone the ferocity of competition which is central to retailing as a whole."

Other retailers were also struggling on the FTSE 100 on Tuesday, including JD Sports Fashion and B&M.

Hargreaves Lansdown jumped 6% after the savings and investment company reported a 50% surge in yearly profits to £402.7m, along with an 8% increase in assets under administration to £134bn.

Online grocer and technology company Ocado rose 2% after maintaining annual guidance following a rise in third-quarter retail revenues. The company, 50% owned by Marks & Spencer, said retail sales came in at £569.6m from £531m a year earlier, with a return to positive volume growth in the last month of the quarter.

Financial services stocks were in demand, with Phoenix Group rebounding after underwhelming the market with its half-year results on Monday. St James's Place, Lloyds and HSBC were also on the up.

FTSE 100 - Risers

Hargreaves Lansdown (HL.) 807.80p 5.59%
Marks & Spencer Group (MKS) 228.10p 2.52%
Ocado Group (OCDO) 806.20p 2.44%
Centrica (CNA) 172.95p 1.74%
Phoenix Group Holdings (PHNX) 534.20p 1.48%
Land Securities Group (LAND) 582.60p 1.39%
St James's Place (STJ) 846.80p 1.34%
Lloyds Banking Group (LLOY) 42.69p 1.27%
Smurfit Kappa Group (CDI) (SKG) 2,904.00p 1.26%
HSBC Holdings (HSBA) 630.80p 1.25%