3 FTSE Retail Stocks in Focus After Kingfisher Shares Surge

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Summary

  • UK-based home improvement retailer Kingfisher PLC reported its total sales increased by 6.8% to £12.3 billion in FY2021 due to a new generation of DIY enthusiasts amid the pandemic.
  • About 20 per cent of people in the 18-34 age bracket had attempted DIY for the first time during the lockdown.

 

UK-based home improvement retailer Kingfisher PLC (LON: KGF) announced its total sales increased by 6.8 per cent to £12.3 billion in the financial year ended on 31 January due to a new generation of DIY enthusiasts amid the pandemic in 2020.

 

According to a survey conducted by the company in February this year, about 20 per cent of people in the 18-34 age bracket had attempted Do It Yourself (DIY) activities for the first time during the lockdown. Kingfisher owns DIY chains, such as B&Q, Screwfix, Castorama and Brico Depot.

 

The company also reported that its FY2021 statutory profit before tax stood at £756 million from £103 million the year before. However, the previous year’s figure was also lower due to the payment of some exceptional costs.

 

Also Read: Kingfisher Plc (LON: KGF) May Beat Profit Expectations on Surge in DIY Demand

 

Thierry Garnie, CEO at Kingfisher, said the lockdown-induced longer trend was proving to be supportive for the industry.

(Source: Refinitiv, Thomson Reuters)

 

Kingfisher’s shares were trading at GBX 322.50, up by 3.13 per cent as of 22 March at 11:04 AM GMT+1, while the FTSE 100 index, which it is a part of, stood at 6,715.01, up by 0.09 per cent for the same period.

 

The company’s market cap was at £6.6 billion, while its 1-year return was at 156.36 per cent. Its five-year average dividend yield was at 3.3 per cent.

In this article, we take a look at 3 other high performing FTSE listed specialty retail stocks with an annual return of over 80 per cent and a 5-year average dividend yield of over 0.3 per cent:

 

  1. JD Sports Fashion (LON: JD)

 

FTSE 100-listed and UK-based sports retail giant JD Sports Fashion announced the completion of its US$495-million acquisition of US footwear brand DTLR as part of its expansion strategy into the US markets on 18 March.

The move comes a week after the retailer announced a 60 per cent acquisition of Poland’s Marketing Investment Group as part of its ongoing expansion strategy into new geographies.

(Source: Refinitiv, Thomson Reuters)

 

JD Sports’ shares were trading at GBX 848.40, up by 0.40 per cent as of 22 March at 12:07 PM GMT+1, while the broader index FTSE 100 stood at 6,713.80, up by 0.08 per cent for the same period.

 

The company’s market cap stood at £8.717 billion while its annual return was at 123.84 per cent. Its five-year average dividend yield was at 0.4 per cent.

  1. Dunelm Group (LON: DNLM) 

UK-based Home furnishings retail company Dunelm Group confirmed the opening of a new store in Newcastle-Under-Lyme on 18 March. The store is currently available for click-and-collect purchases but will be officially opened to the public on 12 April.

The company’s online sales jumped by 111 per cent between June and December 2020 due to a rise in homes improvement and decorations attempts during the lockdown.

Dunelm’s shares were trading at GBX 1,314.00, down by 1.28 per cent as of 22 March at 12:10 PM GMT+1, while the FTSE 250 index, which it is a part of, stood at 21,502.66, up by 0.38 per cent for the same period.

 

The company’s market cap stood at £2.696 billion while its annual return was at 87.71 per cent. Its earnings per share was at 0.43, while its five-year average dividend yield was at 3.1 per cent.

 

Also Read: How Dunelm generated high profits in H1 2021

 

  1. Topps Tiles (LON: TPT)

 

UK-based home improvement retail company Topps Tiles had reported that its revenue fell to £192.8 million for the financial year ended on 26 September 2020, down by 12 per cent from a year ago as its stores were shut during the pandemic.

However, the company plans to maintain a multichannel strategy by focusing on customer experience both in store and online. It aims to take a 20 per cent market share of the tiles market in the UK by 2025.

Topps Tiles’ shares were trading at GBX 67.00, down by 3.18 per cent as of 22 March at 12:13 PM GMT+1, while the FTSE All Share index, which it is a part of, stood at 3,830.72, up by 0.15 per cent for the same period.

The company’s market cap stood at £135.94 million while its annual return was at 126.00 per cent. Its five-year average dividend yield was at 4.3 per cent.

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