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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedJul 22, 2026
DataAggregated Company Financials
Companies114
  • 7D0.5%
  • 3M4.1%
  • 1Y-7.9%
  • YTD-3.9%

In the last week, Consumer Discretionary has been flat. Unfortunately though, the industry is down 7.9% over the past 12 months. Earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

Has the U.K. Consumer Discretionary Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 23 Jul 2026UK£159.0bUK£199.2bUK£6.2b14.3x25.6x0.8x
Sat, 20 Jun 2026UK£157.0bUK£198.8bUK£6.2b13.7x25.4x0.8x
Mon, 18 May 2026UK£151.1bUK£198.4bUK£6.2b12.9x24.5x0.8x
Wed, 15 Apr 2026UK£148.1bUK£195.5bUK£6.0b12.5x24.6x0.8x
Fri, 13 Mar 2026UK£140.3bUK£183.3bUK£5.2b13.7x26.9x0.8x
Sun, 08 Feb 2026UK£145.5bUK£181.1bUK£5.3b14.4x27.3x0.8x
Tue, 06 Jan 2026UK£152.8bUK£185.5bUK£5.2b15.3x29.5x0.8x
Thu, 04 Dec 2025UK£151.6bUK£185.9bUK£5.1b15x29.6x0.8x
Sat, 01 Nov 2025UK£156.1bUK£183.6bUK£4.9b15.8x32x0.9x
Mon, 29 Sep 2025UK£156.1bUK£184.8bUK£5.0b15.2x31.5x0.8x
Wed, 27 Aug 2025UK£157.0bUK£182.5bUK£4.9b15.5x32.2x0.9x
Fri, 25 Jul 2025UK£163.6bUK£183.9bUK£4.9b15.6x33.5x0.9x
Sun, 22 Jun 2025UK£159.3bUK£184.2bUK£4.9b16.8x32.4x0.9x
Tue, 20 May 2025UK£165.1bUK£183.3bUK£4.8b17x34.3x0.9x
Thu, 17 Apr 2025UK£152.0bUK£183.0bUK£4.8b16x31.7x0.8x
Sat, 15 Mar 2025UK£154.1bUK£187.0bUK£5.5b14.4x28.1x0.8x
Mon, 10 Feb 2025UK£163.5bUK£190.9bUK£5.4b15.3x30.4x0.9x
Wed, 08 Jan 2025UK£162.2bUK£190.6bUK£5.4b15.7x30.1x0.9x
Fri, 06 Dec 2024UK£170.4bUK£190.1bUK£5.5b15.9x31.2x0.9x
Sun, 03 Nov 2024UK£168.0bUK£189.7bUK£6.0b16.3x27.9x0.9x
Tue, 01 Oct 2024UK£171.8bUK£188.4bUK£6.2b17x27.8x0.9x
Thu, 29 Aug 2024UK£168.0bUK£188.8bUK£6.4b16.3x26.4x0.9x
Sat, 27 Jul 2024UK£168.2bUK£191.5bUK£6.2b16.1x27.2x0.9x
Mon, 24 Jun 2024UK£161.8bUK£193.0bUK£6.4b15.5x25.4x0.8x
Wed, 22 May 2024UK£195.5bUK£202.3bUK£5.0b15.8x38.9x1x
Fri, 19 Apr 2024UK£185.7bUK£204.7bUK£5.3b15.5x34.8x0.9x
Sun, 17 Mar 2024UK£191.9bUK£205.1bUK£6.3b15.3x30.4x0.9x
Tue, 13 Feb 2024UK£193.2bUK£204.0bUK£6.3b14.3x30.5x0.9x
Thu, 11 Jan 2024UK£195.1bUK£224.0bUK£6.6b14.3x29.4x0.9x
Sat, 09 Dec 2023UK£192.8bUK£224.3bUK£6.1b13.5x31.5x0.9x
Mon, 06 Nov 2023UK£187.3bUK£223.7bUK£6.1b12.5x30.7x0.8x
Wed, 04 Oct 2023UK£187.9bUK£223.3bUK£5.8b12.2x32.3x0.8x
Fri, 01 Sep 2023UK£195.8bUK£222.5bUK£6.0b12.6x32.4x0.9x
Sun, 30 Jul 2023UK£204.1bUK£216.0bUK£6.4b13x32x0.9x
Price to Earnings Ratio

32x


Total Market Cap: UK£204.1bTotal Earnings: UK£6.4bTotal Revenue: UK£216.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.1x202420252026
Current Industry PE
  • Investors are pessimistic on the British Consumer Discretionary industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 25.6x which is lower than its 3-year average PE of 30.1x.
  • The industry is trading close to its 3-year average PS ratio of 0.86x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 2.7% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

Which industries have driven the changes within the U.K. Consumer Discretionary sector?

GB Market0.56%
Consumer Discretionary0.50%
Specialty Stores2.43%
Retail Distributors2.42%
General Merchandise and Department Stores2.15%
Auto Components2.14%
Luxury2.03%
Consumer Durables1.09%
Consumer Services0.56%
Online Retail and Ecommerce0%0
Leisure-0.97%
Hospitality-1.05%
Auto-2.37%
Industry PE
  • Investors are most optimistic about the Auto Components industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 77.3%, which is higher than its past year's earnings decline of 24.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto Components industry, expecting annual earnings growth of 77% over the next 5 years.
  • This is better than its past earnings decline of 24% per year.
  • In contrast, the Leisure industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
KGF KingfisherUK£2.984.6%
+UK£215.8m		7.8%PE20.2x
BME B&M European Value RetailUK£2.1410.7%
+UK£207.0m		-9.5%PE13.1x
WTB WhitbreadUK£24.565.0%
+UK£193.9m		-23.9%PE19.3x
INCH InchcapeUK£8.244.0%
+UK£109.8m		2.7%PE10.6x
DNLM Dunelm GroupUK£8.665.9%
+UK£96.8m		-27.1%PE11.7x

Latest News

CPG
US$30.88
Compass Group
7D
-2.1%
1Y
-14.1%
Narrative Update • Jul 20

CPG: Revised Fair Value And P/E Assumptions Will Shape Returns

Analysts have lifted their price target on Compass Group from $28.57 to $31.00, citing updated assumptions for fair value, discount rate, revenue, profit margin, and future P/E that modestly adjust the risk and return profile investors may want to consider. What’s in the News for Compass Group No recent Compass Group company specific news items were identified in the provided sources, so the updated price target currently reflects analyst model adjustments rather than newly disclosed events.
WOSG
UK£7.30
Watches of Switzerland Group
7D
-6.2%
1Y
101.7%
Narrative Update • Jul 20

WOSG: U.S. Luxury Demand And Brand Mix Will Support Future Upside

Analysts have lifted their fair value estimate for Watches of Switzerland Group from £8.25 to £9.00, reflecting higher price targets across the Street that are supported by views on U.S. luxury demand, brand mix, and valuation reassessments. Analyst Commentary Recent research on Watches of Switzerland Group highlights a mix of caution and optimism, with several bullish analysts pointing to supportive U.S. luxury trends, a constructive brand mix and room for earnings upgrades as key parts of their thesis.
IHG
US$155.55
InterContinental Hotels Group
7D
-3.0%
1Y
32.9%
Narrative Update • Jul 20

IHG: RevPAR Momentum And Net Unit Growth Will Face Multiple Compression Risk

InterContinental Hotels Group's updated fair value estimate has moved from $104.18 to $108.00 as analysts factor in higher Street price targets, with supporting commentary pointing to stronger RevPAR trends, improving net unit growth momentum, and a reduced valuation gap to U.S. peers. Analyst Commentary Recent Street research on InterContinental Hotels Group highlights a mix of optimism on growth drivers such as RevPAR trends and net unit growth, alongside a more measured tone on valuation, particularly when compared with U.S. peers like Hilton and Marriott.
GAW
UK£201.00
Games Workshop Group
7D
-2.0%
1Y
27.5%
Analysis Article • Jul 17

Do Games Workshop Group's (LON:GAW) Earnings Warrant Your Attention?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...
BRBY
UK£10.51
Burberry Group
7D
-4.1%
1Y
-21.8%
PTEC
UK£3.63
Playtech
7D
-6.6%
1Y
-7.4%
Narrative Update • Jul 10

PTEC: Future Upside Will Depend On Executing Earnings Power Repricing

Analysts have nudged their fair value estimate for Playtech lower from £7.59 to £6.89, while still lifting published price targets to £4.45 and £4.60. This reflects updated assumptions for discount rate, revenue growth, profit margins and future P/E multiples.
DNLM
UK£8.66
Dunelm Group
7D
5.9%
1Y
-27.1%
Narrative Update • Jul 09

DNLM: Softer Consumer Backdrop Will Shape A More Measured Outlook

The latest Narrative Update on Dunelm Group reflects a reduced analyst price target to £850 from £1,200, as analysts incorporate softer UK consumer confidence and slower recent retail spending into lower fair value, discount rate, revenue growth, profit margin, and future P/E assumptions. Analyst Commentary Recent analyst commentary around Dunelm Group points to a more cautious tone, with price targets reset and ratings trimmed as weaker UK consumer confidence and slower retail spending are factored into valuation models.
KGF
UK£2.98
Kingfisher
7D
4.6%
1Y
7.8%
Narrative Update • Jul 07

KGF: Execution And Leadership Uncertainty Will Pressure Future Share Returns

Kingfisher's analyst price target has been trimmed by £0.10. This reflects modestly lower fair value assumptions and revenue growth expectations, partly balanced by slightly firmer profit margin and P/E inputs cited by recent analysts.
BME
UK£2.14
B&M European Value Retail
7D
10.7%
1Y
-9.5%
Narrative Update • Jul 07

BME: Bearish Ratings And Consumer Weakness Will Pressure Future Returns

The analyst price target for B&M European Value Retail has increased to £2.00 from £1.80, with analysts citing updated views reflected in modestly adjusted fair value, revenue growth, margin and future P/E assumptions. Analyst Commentary Recent research on B&M European Value Retail shows a mix of views, with several bearish analysts highlighting valuation risks and execution challenges despite upward revisions to some price targets.
PSON
UK£12.07
Pearson
7D
-1.9%
1Y
14.5%
Narrative Update • Jul 07

PSON: AI Skills Expansion And Margin Outlook Will Support Future Upside

Analysts have lifted their price target for Pearson by £0.10, citing updated assumptions around long term revenue growth, profit margins, and future P/E multiples in their valuation work. What’s in the News for Pearson Pearson and Amazon Web Services released research indicating the U.S. currently leads in AI innovation but faces gaps in preparing students for an AI-ready workforce, highlighting employer demand for higher education credentials in the AI era.
NXT
UK£148.35
NEXT
7D
0.5%
1Y
22.8%
ENT
UK£5.49
Entain
7D
-4.4%
1Y
-44.6%
INCH
UK£8.24
Inchcape
7D
4.0%
1Y
2.7%
Narrative Update • Jun 19

INCH: Bolt On Deals And P/E Reset Will Shape Balanced Stock Outlook

Analysts have adjusted their fair value estimate for Inchcape to £8.15 from £8.00, reflecting updated assumptions on the discount rate, revenue growth, profit margin and future P/E, alongside recent Street research that includes a £0.56 reduction in the price target cited by Citi. What’s in the News for Inchcape Inchcape highlighted acquisitions as a key lever for delivering shareholder value, with management describing an active pipeline of bolt on deals under review, source: Inchcape 2026 First Quarter Results call.
WTB
UK£24.56
Whitbread
7D
5.0%
1Y
-23.9%
Narrative Update • Jun 18

WTB: Trading Momentum And P E Reset Will Drive Future Upside

Whitbread's analyst price target has been trimmed by £1.41 to £36.52, as analysts adjust fair value and profit margin assumptions while also expecting different future P/E and revenue growth inputs compared with previous estimates. Analyst Commentary Recent research on Whitbread highlights a mix of caution and optimism, with several price target revisions reflecting updated assumptions on valuation multiples and profit margins.
MAB
UK£2.75
Mitchells & Butlers
7D
3.8%
1Y
-3.7%
SSPG
UK£1.92
SSP Group
7D
3.9%
1Y
8.2%