Kingfisher, the European home-improvement retailer behind brands including B&Q and Castorama, has raised its full-year profit guidance after reporting stronger first-half results.

The company’s shares rose as investors responded to the improved outlook.

Kingfisher reported a 9.9% increase in first-half profit, helping the company become one of the stronger performers among European retailers in Tuesday’s trading.

The improvement comes as consumers continue to spend on home improvement and related products.

The company operates across several European markets, making its performance an indicator of consumer demand in the region’s retail sector. 

Its businesses sell products ranging from building materials and tools to home furnishings and garden equipment.

Kingfisher’s stronger outlook contrasts with the pressure facing some European retailers from higher costs and uncertain consumer spending. 

The company is now expecting improved profitability for the full financial year.

Investors will continue watching consumer demand, household finances and interest rates because these factors can influence how much consumers are willing to spend on non-essential home-improvement projects.

Source: Reuters.