The reality check at Kingfisher has not been as brutal as that meted out to some of the other so-called pandemic winners — think Netflix, Peloton or Asos — but investors may not be done yet and expectations that the retailer’s shares will fall further have mounted.
The stock is now the fifth-most-shorted in London, with investors betting that booming sales enjoyed over the past 18 months will decline abruptly and that inflationary cost pressures could take the shine off margins. The shares have fallen by about a quarter in value since the start of this year and change hands at just over eight times forecast earnings, among the cheapest ratings in the retailer’s recent history and below an average multiple of almost 11
