Case Studies

Woozle's Short Idea in Kingfisher Generates 24% Returns for Clients

Our short/sell idea on Kingfisher generated more than 24% investment returns for clients as weak UK & France trading dents profits


On 18th September 2019, the UK home improvement group Kingfisher revealed weaker than anticipated profit and sales results as weakeness in their core French and UK markets continued to weigh on the trading. 

 

In it's earnings report today, management guided that their trading outlook remains mixed citing ongoing uncertainty around UK consumer demand. In France, retail profits at Castorama were down 4.4% on logistics and delivery issues as well as stock inefficiencies related to the ONE Kingfisher unification project. Brico Depot also saw declining results on the back of increased DIY competition in France from the likes of privately listed Leroy Merlin that continue to steal share. 

 

The Financial Times reports on the dismal trading update from DIY conglomerate Kingfisher as weak trading in core markets hit profits

 

Woozle's primary research reports on Kingfisher suggested early evidence of declining revenue and profit trends at B&Q in the UK and Castorama & Brico Depot in France as a result of weak consumer confidence, increased discounting and markdown activity, higher levels of DIY competition, and supply chain distruptions relating to the ONE Kingfisher unification project. 

 

Woozle's Short/Sell idea on Kingfisher generated more than 24% investment returns for clients. 

 

 

 

 

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