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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedFeb 05, 2026
DataAggregated Company Financials
Companies116
  • 7D0.2%
  • 3M-2.1%
  • 1Y-6.7%
  • YTD-1.8%

Over the last 7 days, the Consumer Discretionary industry has dropped 1.8%, driven by a pullback from NEXT of 4.6%. Meanwhile, InterContinental Hotels Group actually outperformed within the industry, gaining 6.5% in the last week. However, the industry is down 8.1% over the past year. 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
Thu, 05 Feb 2026UK£148.7bUK£181.0bUK£5.3b14.2x27.9x0.8x
Sat, 03 Jan 2026UK£152.4bUK£185.6bUK£5.2b15.3x29.4x0.8x
Mon, 01 Dec 2025UK£153.1bUK£186.2bUK£5.1b15.2x30x0.8x
Wed, 29 Oct 2025UK£159.1bUK£183.3bUK£5.0b16.3x31.9x0.9x
Fri, 26 Sep 2025UK£154.1bUK£184.9bUK£5.0b14.9x31x0.8x
Sun, 24 Aug 2025UK£159.7bUK£183.8bUK£4.6b15.5x34.4x0.9x
Tue, 22 Jul 2025UK£160.4bUK£184.0bUK£4.9b15.7x32.8x0.9x
Thu, 19 Jun 2025UK£160.9bUK£184.3bUK£4.9b17.2x32.7x0.9x
Sat, 17 May 2025UK£165.3bUK£183.6bUK£4.8b17.2x34.3x0.9x
Mon, 14 Apr 2025UK£148.0bUK£186.4bUK£4.9b15.9x30.2x0.8x
Wed, 12 Mar 2025UK£156.2bUK£187.6bUK£5.6b14.3x27.7x0.8x
Fri, 07 Feb 2025UK£164.7bUK£190.8bUK£5.4b15.3x30.6x0.9x
Sun, 05 Jan 2025UK£162.4bUK£190.8bUK£5.4b15.8x30.1x0.9x
Tue, 03 Dec 2024UK£166.9bUK£190.3bUK£5.4b15.8x30.9x0.9x
Thu, 31 Oct 2024UK£170.6bUK£189.5bUK£5.9b16.3x28.9x0.9x
Sat, 28 Sep 2024UK£174.7bUK£188.4bUK£6.2b17.5x28.2x0.9x
Mon, 26 Aug 2024UK£170.9bUK£188.8bUK£6.4b16.8x26.9x0.9x
Wed, 24 Jul 2024UK£164.7bUK£191.4bUK£6.2b15.8x26.6x0.9x
Fri, 21 Jun 2024UK£161.9bUK£193.0bUK£6.4b15.4x25.4x0.8x
Sun, 19 May 2024UK£196.2bUK£202.4bUK£5.0b16.3x39.1x1x
Tue, 16 Apr 2024UK£188.2bUK£205.0bUK£5.4b15.7x35.1x0.9x
Thu, 14 Mar 2024UK£192.8bUK£204.6bUK£6.1b15.7x31.4x0.9x
Sat, 10 Feb 2024UK£192.9bUK£204.0bUK£6.3b14.4x30.5x0.9x
Mon, 08 Jan 2024UK£194.2bUK£224.0bUK£6.6b14.1x29.3x0.9x
Wed, 06 Dec 2023UK£189.9bUK£223.8bUK£6.2b12.6x30.7x0.8x
Fri, 03 Nov 2023UK£185.6bUK£223.7bUK£6.1b12.2x30.4x0.8x
Sun, 01 Oct 2023UK£190.4bUK£223.3bUK£5.8b12.6x32.7x0.9x
Tue, 29 Aug 2023UK£192.0bUK£222.5bUK£6.0b12.4x31.8x0.9x
Thu, 27 Jul 2023UK£202.4bUK£214.2bUK£6.3b12.3x32.3x0.9x
Sat, 24 Jun 2023UK£196.7bUK£214.6bUK£6.2b13.1x31.9x0.9x
Mon, 22 May 2023UK£208.0bUK£213.5bUK£6.3b13.5x33x1x
Wed, 19 Apr 2023UK£202.4bUK£208.1bUK£7.1b12.8x28.7x1x
Fri, 17 Mar 2023UK£192.7bUK£209.9bUK£8.0b12.1x24x0.9x
Sun, 12 Feb 2023UK£195.3bUK£207.0bUK£8.2b13x23.8x0.9x
Price to Earnings Ratio

23.8x


Total Market Cap: UK£195.3bTotal 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 Market1.90%
Consumer Discretionary0.18%
Retail Distributors2.08%
Consumer Durables1.83%
Specialty Stores1.35%
Hospitality1.05%
Online Retail and Ecommerce0%0
Luxury-0.032%
Auto-1.69%
Auto Components-2.08%
Leisure-2.36%
General Merchandise and Department Stores-3.83%
Consumer Services-4.81%
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 44.2%, 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$142.506.5%
+US$1.3b		7.3%PE28.6x
CPG Compass GroupUK£22.221.1%
+UK£408.1m		-20.4%PE27.6x
FRAS Frasers GroupUK£7.202.8%
+UK£208.5m		14.8%PE7.5x
KGF KingfisherUK£3.483.3%
+UK£183.7m		44.8%PE31.9x
BKG Berkeley Group HoldingsUK£43.184.5%
+UK£170.9m		12.2%PE11.2x

Latest News

KGF
UK£3.48
Kingfisher
7D
3.3%
1Y
44.8%
WOSG
UK£5.03
Watches of Switzerland Group
7D
-4.7%
1Y
-9.5%
PSON
UK£8.98
Pearson
7D
-5.4%
1Y
-33.6%
BME
UK£1.83
B&M European Value Retail
7D
4.0%
1Y
-42.3%

BME: Interim Dividend Reset Will Support Future Upside Potential

Analysts have reduced their fair value estimate for B&M European Value Retail from £2.32 to £2.06, reflecting updated assumptions for discount rates, revenue growth, profit margins and future P/E multiples. What's in the News Company announced an interim dividend of 3.5 pence per ordinary share for the first half of fiscal year 2026, compared with 5.3 pence for the first half of fiscal year 2025.
ENT
UK£6.48
Entain
7D
1.7%
1Y
-11.9%

ENT: Future Upside Will Depend On UK Gaming Tax Headwinds Easing

Analysts have reduced their fair value estimate for Entain from £8.59 to £8.00. This change reflects lower price targets across several firms and a slightly higher discount rate as they factor in UK gaming tax changes and more measured expectations for growth and margins.
BOOT
UK£1.90
Henry Boot
7D
-12.8%
1Y
-5.0%

BOOT: Freeport Industrial Scheme Will Drive Future Margin-Led Upside Potential

Analysts have reduced their price target on Henry Boot from £2.55 to £2.30, citing lower assumed revenue growth, a slightly higher discount rate, and a reduced future P/E multiple. These factors are reported to be partially offset by a stronger projected profit margin.
THG
UK£0.37
THG
7D
-6.3%
1Y
-5.8%

What THG Plc's (LON:THG) P/S Is Not Telling You

Jan 30
What THG Plc's (LON:THG) P/S Is Not Telling You
FRAS
UK£7.20
Frasers Group
7D
2.8%
1Y
14.8%

Frasers Group Plc's (LON:FRAS) Shares Lagging The Market But So Is The Business

Jan 29
Frasers Group Plc's (LON:FRAS) Shares Lagging The Market But So Is The Business
NXT
UK£129.65
NEXT
7D
-4.6%
1Y
33.2%

Estimating The Fair Value Of NEXT plc (LON:NXT)

Jan 28
Estimating The Fair Value Of NEXT plc (LON:NXT)
IHG
US$142.50
InterContinental Hotels Group
7D
6.5%
1Y
7.3%

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.
BKG
UK£43.18
Berkeley Group Holdings
7D
4.5%
1Y
12.2%

BKG: Ongoing Buybacks And Steady Margins Will Support Balanced Future Returns

Analysts have slightly reduced their price target for Berkeley Group Holdings to reflect a small decrease in fair value and future P/E assumptions, partly offset by a modestly improved profit margin outlook. What's in the News Completed a share repurchase of 208,696 shares, about 0.22% of share capital, for £7.85 million under the buyback announced on September 11, 2025 (Key Developments).
ASC
UK£2.92
ASOS
7D
-11.0%
1Y
-27.2%

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.
PTEC
UK£2.81
Playtech
7D
-8.0%
1Y
-62.0%

PTEC: Future Returns Will Depend On U.S. Evolution Lawsuit Resolution

Analysts have trimmed their average price target on Playtech to £2.40 from £4.05, citing increased uncertainty around the U.S. legal dispute with Evolution and the wide range of potential lawsuit outcomes as key reasons for the more cautious stance. Analyst Commentary Recent Street research has shifted to a more cautious stance on Playtech, with the latest move being a downgrade to Hold and a reset of the price target to £2.40 from £4.05.
CPG
UK£22.22
Compass Group
7D
1.1%
1Y
-20.4%

CPG: Strengthened European Platform And Returns Profile Will Support Long Runway

Analysts have nudged their fair value estimate for Compass Group slightly higher to £28.33 per share from £28.23, citing recent price target increases and upgraded views on long term EBITA growth, European growth potential, and an improved returns profile. Analyst Commentary Bullish Takeaways Bullish analysts point to what they describe as "sustainably enhanced" long term EBITA growth as a key support for higher fair value estimates and price targets.
BTRW
UK£4.00
Barratt Redrow
7D
2.1%
1Y
-12.5%

BTRW: Dividend And Leadership Transition Will Support Future Upside Potential

Analysts have trimmed their price target for Barratt Redrow to reflect a slightly lower fair value estimate of £4.79. This change is driven by small adjustments to the discount rate, revenue growth, profit margin and future P/E assumptions.
GAW
UK£170.10
Games Workshop Group
7D
-2.4%
1Y
16.3%