SHARE OF THE WEEK: B&Q owner Kingfisher faces more headwinds


SHARE OF THE WEEK: B&Q owner Kingfisher has lost its sparkle as it struggles to adjust to life after Covid, and DIY retailer faces more headwinds

Shares in B&Q owner Kingfisher soared through the pandemic as lockdowns fuelled a home improvement boom. 

But the stock has lost its sparkle as it struggles to adjust to life after Covid with sales and profits in decline. And the DIY retailer faces more headwinds as it prepares to update investors on Thursday. 

The trading statement comes after the Office for Budget Responsibility warned of a sharp slowdown in the housing market, which could hit sales further. 

Its customer base is also grappling with the rising cost of living, fuelling fears they may push back DIY projects to sunnier times. 

It has, however, been buoyed by surging demand for insulation and other energy efficiency products, a trend which investors will hope continues. 

But the business, which also owns Screwfix, will need more than just strong demand for loft insulation to breathe life back into its share price. It has fallen 29 per cent this year, erasing many of the gains it made during the pandemic. 

Hargreaves Lansdown analyst Susannah Streeter said: ‘Cost of living pressures are expected to show up in Kingfisher’s update as consumers make hard choices about how to spend their money. 

‘The boom in DIY which played out during the pandemic has been fading. Now, with mortgage payments rising, and food and energy bills soaring, there is likely to be less disposable cash around and borrowing may be more difficult for major projects.’ 

Read more at DailyMail.co.uk