H1 results call summary Alongside H1 results, management presented an update on the progress it has made on its strategic initiatives. The CEO reiterated that Kingfisher is in the ''best operational shape in years'' but acknowledged that there is more work to be done. The focus of the QandA centred on the building blocks of the gross margin improvement and the second half profit dynamics since FY Jan-26 adj. PBT guidance implies an H2 profit decline. Where do the shares go from here? Kingfisher''s shares are +16% as we write (GBp 292), which reflects positioning, the strong H1 performance, particularly the +100bps gross margin expansion, and management''s confidence in its strategy. However, FY Jan-26 adj. PBT guidance at the upper end of the range, implies that H2 profits could decline -11%. While this reflects seasonality and timing of costs, we are mindful of the caution around the consumer in the UK and France, as well as higher marketing and technology spend in H2. We maintain our Underperform rating. Next news Kingfisher is scheduled to report Q3 sales on 25 November. Results recap H1 results first take: upper end of the range Key takeaways from the call . Consumer outlook: Management saw a resilient UK consumer in H1 with double-digit growth in the big-ticket order book, but flagged labour-market softness, high food inflation and UK Budget uncertainty. It expects a middle of the range - flat to low single digit growth - outcome for the UK. French demand remains subdued - despite low interest rates, the savings ratio is elevated. It is relatively cautious about the French consumer in H2 and expects a middle to lower end of the range - low-mid single digit decline to flat - outcome for France. Polish demand was slightly worse than expected in H1, but shows early signs of a slow recovery. It also expects a middle of the range - low single digit decline to low single digit growth - outcome for Poland. . Gross margin dynamics: H1...