SHARE OF THE WEEK: B&Q owner Kingfisher faces more headwinds

Shares in B&Q owner Kingfisher skyrocketed during the pandemic as the lockdowns sparked a boom in home improvement.

But the stock has lost its sparkle as it struggles to adapt to post-Covid life with falling sales and profits. And the DIY retailer is facing more headwinds as it prepares to brief investors on Thursday.

The trade statement comes after the Office for Budget Responsibility warned of a sharp slowdown in the housing market that could further depress sales.

The customer base is also grappling with the rising cost of living, fueling fears that DIY projects are being postponed to sunnier times.

However, it was supported by rising demand for insulation and other energy efficiency products, a trend investors hope will continue.

But the company, which also owns Screwfix, needs more than just strong demand for attic insulation to revive its share price. It is down 29 percent this year, wiping out much of the gains it made during the pandemic.

Hargreaves Lansdown analyst Susannah Streeter said: ‘The cost of living is expected to come under pressure in the Kingfisher update as consumers face tough choices about how to spend their money.

“The DIY boom that took place during the pandemic is fading. With mortgage payments rising and food and utility bills rising, cash availability is likely to be reduced and borrowing for large projects may become more difficult.”