Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedFeb 08, 2026
DataAggregated Company Financials
Companies116
  • 7D-0.8%
  • 3M-3.8%
  • 1Y-7.5%
  • YTD-3.8%

Over the last 7 days, the Consumer Discretionary industry has remained flat, although notably InterContinental Hotels Group gained 5.6%. Unfortunately though, the industry is down 7.5% over the past 12 months. Looking forward, earnings are forecast to grow by 17% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Tue, 27 Jun 2023UK£197.0bUK£214.6bUK£6.2b12.9x32x0.9x
Thu, 25 May 2023UK£202.0bUK£214.1bUK£6.3b13.2x31.9x0.9x
Sat, 22 Apr 2023UK£204.8bUK£207.6bUK£6.7b12.8x30.7x1x
Mon, 20 Mar 2023UK£174.9bUK£194.7bUK£6.7b11.9x26.3x0.9x
Wed, 15 Feb 2023UK£196.0bUK£207.0bUK£8.2b12.6x23.9x0.9x
Price to Earnings Ratio

23.9x


Total Market Cap: UK£196.0bTotal Earnings: UK£8.2bTotal Revenue: UK£207.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.7x202420252026
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 27.3x which is lower than its 3-year average PE of 30.7x.
  • The industry is trading close to its 3-year average PS ratio of 0.88x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have declined 13% per year over the last three years,
  • Revenues have also declined 4.4% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

GB Market1.13%
Consumer Discretionary-0.79%
Luxury5.31%
Retail Distributors1.61%
Specialty Stores0.58%
Online Retail and Ecommerce0%0
Consumer Durables-0.034%
Leisure-0.20%
Auto Components-1.05%
Auto-1.39%
Hospitality-1.39%
General Merchandise and Department Stores-2.55%
Consumer Services-5.61%
Industry PE
  • Investors are most optimistic about the Luxury industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 44.5%, which is higher than its past year's earnings decline of 32.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Auto industry, expecting annual earnings growth of 73% over the next 5 years.
  • 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
IHG InterContinental Hotels GroupUS$142.405.6%
+US$1.1b		5.5%PE28.6x
BRBY Burberry GroupUK£11.807.4%
+UK£312.3m		-2.2%PS1.8x
KGF KingfisherUK£3.472.8%
+UK£148.1m		41.7%PE31.7x
PPH PPHE Hotel GroupUK£19.7210.4%
+UK£77.9m		48.8%PE37.7x
GRG GreggsUK£16.804.5%
+UK£74.1m		-19.7%PE11.8x

Latest News

NXT
UK£129.00
NEXT
7D
-2.8%
1Y
32.7%

NXT: Future Cash Returns Will Rely On Execution And Earnings Resilience

Narrative update Analysts have inched their price targets for NEXT higher, with recent moves from £178.00 to £180.00 and from £123.00 to £139.00, reflecting updated views on the company’s outlook and valuation drivers. Analyst Commentary Recent research updates point to a generally constructive stance on NEXT, with higher price targets framed around the company’s ability to execute and sustain its current positioning.
BRBY
UK£11.80
Burberry Group
7D
7.4%
1Y
-2.2%

BRBY: Future Returns Will Hinge On Fragile China Luxury Recovery Risks

Burberry Group’s analyst fair value estimate has moved from £7.96 to £9.40 as analysts factor in updated assumptions on revenue growth, profit margins and a higher future P/E following recent price target revisions from major banks. Analyst Commentary Recent Street research on Burberry Group points to a mixed set of views, with some firms lifting price targets while others have trimmed their expectations.
GRG
UK£16.80
Greggs
7D
4.5%
1Y
-19.7%

GRG: Store Expansion And Brand Loyalty Will Support Future Upside Despite Trimmed Assumptions

Analysts have trimmed their price targets for Greggs to around £20.60 to £21.70 per share, reflecting updated assumptions on discount rates, revenue, profit margins and future P/E multiples while still viewing the shares positively overall. Analyst Commentary Recent research updates show that while target prices have been trimmed, several bullish analysts still see room for upside in Greggs shares at current levels.
FRAS
UK£7.11
Frasers Group
7D
2.2%
1Y
13.0%
KGF
UK£3.47
Kingfisher
7D
2.8%
1Y
41.7%

KGF: Higher Earnings Multiple Will Magnify Risks From Softer Profit Margins

Analysts have revised their Kingfisher price targets, reflecting slightly different assumptions for the discount rate, modestly adjusted expectations for revenue growth and profit margins, and an updated future P/E multiple now estimated at about 13.63x. Valuation Changes Fair Value: Modelled fair value remains unchanged at 2.4, indicating no adjustment to the core valuation output.
CPG
UK£21.25
Compass Group
7D
-2.8%
1Y
-23.0%

Does Compass Group (LON:CPG) Have A Healthy Balance Sheet?

Feb 06
Does Compass Group (LON:CPG) Have A Healthy Balance Sheet?
MAB
UK£2.73
Mitchells & Butlers
7D
3.4%
1Y
17.2%

Benign Growth For Mitchells & Butlers plc (LON:MAB) Underpins Its Share Price

Feb 05
Benign Growth For Mitchells & Butlers plc (LON:MAB) Underpins Its Share Price
WOSG
UK£4.86
Watches of Switzerland Group
7D
-6.3%
1Y
-15.0%
PSON
UK£8.98
Pearson
7D
-6.2%
1Y
-31.6%
PPH
UK£19.72
PPHE Hotel Group
7D
10.4%
1Y
48.8%

PPH: Formal Sale Process And Options Review Will Frame Balanced Future Upside

Analysts have reduced their fair value estimate for PPHE Hotel Group from £21.01 to £20.41. This change reflects updated assumptions for the discount rate, revenue growth, profit margins and future P/E levels.
IHG
US$142.40
InterContinental Hotels Group
7D
5.6%
1Y
5.5%

IHG: Future Returns Will Depend On Buybacks And Resilient Fee-Based Model

Analysts have raised their price target for InterContinental Hotels Group from £140.44 to £148.86. The adjustment reflects updated views on discount rates, profit margin assumptions and a slightly higher future P/E multiple following recent research updates.
WTB
UK£26.89
Whitbread
7D
-1.3%
1Y
-3.6%

WTB: Future Earnings Momentum Will Reflect Balanced Execution And Activist Review Risks

We have nudged our fair value estimate for Whitbread to £29.09 from £28.46, reflecting analysts' updated price targets and assumptions around slightly higher long term revenue growth, a modestly lower discount rate, and a somewhat richer future P/E multiple, even as projected profit margins are a touch softer. Analyst Commentary Recent Street research on Whitbread reflects a mix of optimism and caution that feeds directly into how analysts are framing valuation, growth potential, and execution risk.
DEBS
UK£0.22
boohoo group
7D
-12.0%
1Y
-22.7%

DEBS: AI Rollout Will Guide Pricing Decisions As Outlook Remains Balanced

Analysts have reduced their fair value estimate for boohoo group from £0.26 to about £0.24 per share, citing slightly softer assumptions for revenue trends, profit margins, and future P/E multiples. What's in the News Debenhams Group, part of boohoo group, has rolled out a new artificial intelligence solution aimed at managing sales, stock and pricing more effectively across its brands as the Golden Quarter begins.
ASC
UK£2.89
ASOS
7D
-12.6%
1Y
-27.0%

ASC: Reset Expectations As Margin Delivery Will Shape Measured Share Recovery

Narrative Update The analyst price target for ASOS has been reduced from £2.70 to £2.40, reflecting updated views from analysts who cite more cautious assumptions around fair value and profit margins, while maintaining a Neutral stance on the shares. Analyst Commentary JPMorgan has adjusted its view on ASOS by reducing the price target to £2.40 from £2.70 while keeping a Neutral rating.
BWY
UK£25.88
Bellway
7D
-4.7%
1Y
2.7%

BWY: Fair Outlook Will Balance Higher Discount Rate And Dividend Decisions

Analysts have lifted their price target on Bellway from £24.50 to £27.45, citing updated assumptions for the discount rate, revenue growth, profit margins and future P/E as the key drivers of the change. What's in the News Shareholders approved new Articles of Association at the AGM held on 27 November 2025, updating the company’s governing document (AGM resolution).
CRN
UK£1.90
Cairn Homes
7D
5.1%
1Y
1.5%