Share of the week: B&Q owner Kingfisher struggles to adjust to post-Covid life and loses its luster, DIY retailers face more headwinds.
B&Q owner Kingfisher shares It surged throughout the pandemic as lockdowns fueled a housing improvement boom.
But the stock has lost its luster as it struggles to adjust to post-coronavirus sales and earnings declines. DIY retailers also face more headwinds as they prepare to update investors on Thursday.
The deal statement comes after the Office of Budget Responsibility warned of a sharp slowdown in the housing market, which could hurt sales further.
The company’s customer base is also grappling with rising costs of living, fueling concerns that it will postpone DIY projects for brighter times.
But investors hope the trend will continue, fueled by surging demand for insulation and other energy-efficient products.
But the business, which also owns Screwfix, needs more than just strong demand for loft insulation to fuel its stock price. It has fallen 29% this year, wiping out much of the gains made during the pandemic.
Hargreaves Lansdown analyst Susannah Streeter said:
“The DIY boom that unfolded during the pandemic is fading. Now, with rising mortgage payments and skyrocketing food and energy bills, disposable cash is scarce and major projects borrowing may become more difficult.
https://www.dailymail.co.uk/money/investing/article-11445087/SHARE-WEEK-B-Q-owner-Kingfisher-faces-headwinds.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 Share of the week: B&Q owner Kingfisher faces more headwinds