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New Kingfisher boss makes turnaround bid

The group struggled under former CEO Véronique Laury's turnaround plan
November 20, 2019

Thierry Garnier has only been Kingfisher (KGF) chief executive since October, so perhaps it is unsurprising he seems to be ‘kitchen-sinking’ his first update in the top job – highlighting the group’s problems all at once, to draw a line under them and allow his tenure to start with something of a clean slate.

IC TIP: Hold at 195p

As at its half-year results, Kingfisher experienced growth in Screwfix and its Romanian business. Its Polish division, however, which had delivered growth in the first half, fell 3.2 per cent over the third quarter on a like-for-like basis. Overall group sales were down 3.7 per cent, which management attributed to softer markets and disruption from the introduction of new ranges.

Mr Garnier said the group was “trying to do too much at once”, running multiple initiatives in parallel and failing to balance its scale with the need to stay close to local markets. In response, he said the group’s priority would be to fix operational issues with IT and the supply chain in France, while working on a longer-term plan to simplify the business and build out its digital capabilities. 

This does not mean things will turn around overnight, however. The outlook for operations in the UK, France and Poland in the coming year is grim, with continued disruption and soft markets expected.