B&Q owner Kingfisher has increased its profit target for the year despite pointing to weaker market conditions in the UK.
Shares in the group, which runs more than 1,800 stores globally, moved higher on Tuesday morning as it reported stronger demand for big-ticket spending.
Kingfisher told shareholders that it is on track to deliver a pre-tax profit of between £540 million and £570 million for the year.
It had previously guided towards a range of between £480 million and £520 million.
The group said the upgrade came despite “softening market conditions” in the UK and Poland over the third quarter.
Group like-for-like revenues increased by 0.9% to £3.25 billion for the three months to October 31, compared with the previous year.
Like-for-like sales were up 3% to £1.69 billion in the UK and Ireland over the quarter.
The company said the wider UK market had been “slightly negative” over the quarter, saying it continues to be “mindful of inflation, uncertainty ahead of the autumn Budget and the softening labour market”.
Nevertheless, it said it has been buoyed by its growth strategy in the UK and the closure of Homebase stores over the past year.
Thierry Garnier, chief executive officer, said: “We delivered another quarter of high-quality, volume-led growth, driven by our group strategic initiatives in e-commerce and trade and by our performance in core and ‘big-ticket’ categories.
“B&Q, Screwfix and Iberia continue to strongly outperform their markets.
“Our performance to date and progress in our strategic initiatives give us the confidence to upgrade our full-year profit guidance.”
Adam Vettese, market analyst for investment platform EToro, said: “While Kingfisher’s share price has outperformed the FTSE 100 in 2025 and current technicals remain constructive, ongoing macroeconomic uncertainty and soft consumer demand in some regions could moderate further upside in the near term.
“Investors are encouraged by the group’s balance of prudent cost control and targeted capital returns but will be closely watching management’s progress in reviving French operations and sustaining group-wide margin improvements.”
Shares in the retail firm were 4.9% higher in early trading.
