Retail

Kingfisher shrugs off doubts about turnround


Kingfisher still believes its transformation plan will boost profit by £500m over five years, despite unhelpful external conditions and growing scepticism among analysts and investors that the target will ever be met.

The home improvement group, which reports half-year results on Wednesday, is halfway through its “One Kingfisher” programme aimed at cutting costs, simplifying ranges and increasing online sales. The target of £500m in additional profit was announced by chief executive Véronique Laury in January 2016, but analysts’ forecasts imply an uplift of less than £300m by 2021. The shares are almost a fifth below their 2016 level, and earnings forecasts have been falling.

“We have set out a plan that we always said would be back-end loaded,” said Ms Laury, who argued that the revamp is taking time because it goes much deeper than other business transformation programmes. “Many others are just scratching the surface, adding more cost on top of their existing costs.”



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