Morningstar

Kingfisher: Poor Weather Hits Sales, but Guidance Unchanged

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Securities In This Article
Kingfisher PLC
(KGF)

No-moat Kingfisher KGF reported a 3.3% decline in like-for-like sales during the first quarter as poor weather in the U.K. and France resulted in less demand for its seasonal outdoor and garden products. Trading has sequentially improved in May (down 1.1%) compared with April, supported by an improvement in weather conditions and thus we reiterate our GBX 310 fair value estimate, which incorporates an estimated full-year sales decline of 1%. Management has kept its full-year profit-before-tax guidance unchanged, which implies a 16% drop against last year. Shares appear undervalued.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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About the Author

Matthew Donen, CFA

Senior Equity Analyst
More from Author

Matthew Donen, CFA, is a senior equity analyst, Europe, for Morningstar*. He covers European industrials, which includes capital goods manufacturers and the building materials sector. He is also a member of the Morningstar Economic Moat committee.

Before joining Morningstar in 2020, Donen spent more than two years on the buyside at Nedgroup Investments in Cape Town, South Africa, where he was a international-equity analyst.

He holds a bachelor's degree in finance and accounting from the University of Cape Town. He also holds the Chartered Financial Analyst® designation and is a Chartered Accountant, completing his articles at Ernst & Young in Cape Town, South Africa.

* Morningstar Holland BV (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

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