Kingfisher shares sink on downgrade
Kingfisher downgraded its annual forecast due to weakness in Poland and France. Wickes shares are also falling. IGTV’s @AngelineOng gets you the details behind the stock move.
(Video Transcript)
European consumer starting to crack
Kingfisher shares are really moving as we speak. Let's just show you a bit of action here because the bar for the daily chart is quite spectacular. Look at that there, down 6.4%. The European home improvement retailer has downgraded its annual profit forecast by 7%. This is after weakness in Poland and also France, which offset a pick-up in the UK and Ireland.
What's also interesting is that it's showing and adding to the signs that we had in previous weeks that the consumer is starting to crack, at least in Europe. That cost-of-living crisis, prolonged it must be said after two years, is finally starting to show. However, Kingfisher did say that UK consumers remain quote healthy. Kingfisher owns B&Q and Screwfix in Britain and Castorama and Bricodepo in France.
Wickes is worth watching
I want to check on Wickes for you as well, because this is another one within the same space. If any of you've ever been to Wickes, their main strength is anything to do with wood and carpentry. It must be said that their stores do need a new lick of paint and reorganisation.
Wickes is another interesting one because we had some numbers out of Wickes earlier today that were particularly interesting given what's been happening in the do-it-yourself (DIY) space. It's still giving a first-half dividend, pre-tax profit coming in at £21.1 million and its revenues are £827.7 million. So, given these circumstances, those figures are not too bad actually, but Wix's shares down 1.3%.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
