Kingfisher Share Price Plummets After Profit Warning

Kingfisher's full-year profit before tax (PBT) fell by 7%, with adjusted earnings per share (EPS) down 5.2%.

Sales dipped 1.5% in the year to 31 January 2025, primarily due to weakness in the French market.

The company announced a new £300 million share buyback program.

A dividend yield of 4.4% is maintained, with a dividend of 12.4p per share

Kingfisher expects a dip in free cash flow for 2025-26 but aims to recover beyond £500m annually from 2026-27.

Projected price-to-earnings (P/E) multiples of around 12 to 13.

Why this matters: The results highlight the ongoing struggles in the retail sector, particularly for companies with significant exposure to the challenging French market. It also raises questions about the long-term growth prospects for Kingfisher.

Q: Why did Kingfisher's share price fall?

Q: What is Kingfisher doing to address the challenges?

Q: What does it mean for the company dividend?

Kingfisher faces significant challenges, particularly in France, and the short term looks set to be difficult.

Investors should carefully consider the risks associated with the retail sector and Kingfisher's exposure to the French market.

The share buyback program and maintained dividend may offer some support to the share price.

While projected price-to-earnings (P/E) multiples of around 12 to 13, and the dividend may seem appealing, economic uncertainty could throw profit forecasts off.

Source 1: As the Kingfisher share price falls 12% on FY results, is it too cheap to ignore? | The Motley Fool UK

Source 2: B&Q owner Kingfisher profits slide as French market struggles - Retail Gazette

Source 3: Kingfisher shares slump as firm in need of further repair - interactive investor