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.
