Kingfisher plc (LON: KGF) said on Tuesday that its sales in the fiscal fourth quarter saw a significant increase on the back of higher demand for DIY (do-it-yourself) projects amidst the ongoing Coronavirus pandemic that continues to keep people restricted to their homes.
Kingfisher shares jumped roughly 2.5% in premarket trading on Tuesday. Including the price action, the stock is now exchanging hands at 287 pence per share. In comparison, it had tumbled to as low as 124 pence per share in March 2020, when the COVID-19 crisis weighed on its business. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a list of the top few to make selection easier for you.
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The owner of prominent brands like Screwfix and B&Q said that its comparable sales in the quarter that concluded on 9th January printed 16.9% higher on an annualised basis. In the prior quarter (Q3), Kingfisher’s sales had come in 17.6% higher.
Jefferies analysts’ comments on Tuesday
Jefferies analysts also commented on the update on Tuesday and said:
“A broad-based strong regional performance speaks to the enduring appeal of DIY in the time of COVID as infections and restrictions surge once again.”
For the full financial year, analysts’ estimates for Kingfisher’s pre-tax profit on an adjusted basis stands at £667 million to £742 million. In comparison, Kingfisher had posted £544 million of adjusted pre-tax profit in fiscal 2019-20.
In the recent quarter, the City of Westminster-based company highlighted an over 150% year over year growth in digital sales. According to CEO Thierry Garnier:
“While the strength of our Q4 trading, to date, is reassuring, uncertainty over COVID-19 and the impact of lockdown restrictions in most of our markets continue to limit our visibility.”
Kingfisher’s stock gained over 20% in 2020
In an announcement in December, the home improvement retailer said it would return business rates relief worth £110 million.
Kingfisher performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, the British multinational retailing company has a market cap of £6.09 billion and a price to earnings ratio of 39.83.
In separate news from the United Kingdom, infrastructure and private equity fund, Foresight Group, said on Tuesday that it was considering to list on the London Stock Exchange in February.