Strong start to year with UK standing out on a 2-year LFL basis A very strong start to the year with the Group annualising against weak comps from lockdown 1 in the latter part of the quarter when stores were temporarily closed. Group total sales were up 60% (+61.9% in constant currency) with LFL +64.4% (Q4 LFL +17.4%). UK LFL sales +65.0% (Q4 LFL +19.4%) with France +101.7% (Q4 LFL +15.4%) and Poland -12% (Q4 LFL +4.9%). E-commerce sales were up 63% (Q4 +154%; Q3 +153.4%) and now account for 21% of sales. To give a better view of the underlying performance, on a 2-year basis, Q1 LFL UK +39% with France +18.1% and Poland 20.5%. Management has announced the launch of Screwfix as a pure-play in France. Management raise guidance 1H22 LFL sales outlook raised to ‘mid-to-high teens’ from ‘low double-digit’. As a result, management guide to 1H adjusted PBT of £580m to £600m versus company-compiled analyst consensus of £488m, with FY22 consensus at PBT of £723m. Forecasts/TP/recommendation put under review Kingfisher has benefitted from the demand for house-related items during the pandemic and improved profitability from a refocus of the business. Comparables will get more difficult from 2Q and demand is likely to normalise as restrictions are lifted and discretionary spending switches back to leisure. Ultimately, Kingfisher is still a big box retailer and the structural challenges from the shift online, rise of the discounters and the underlying ‘do it for me’ trend have not gone away, in our view. We struggle to see where sustainable medium-term growth will come from.