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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedJul 21, 2026
DataAggregated Company Financials
Companies114
  • 7D-0.5%
  • 3M4.1%
  • 1Y-6.2%
  • YTD-3.6%

Last week, the Consumer Discretionary industry hasn't moved much but Kingfisher is up 6.2% in that time. Unfortunately though, the industry is down 5.8% over the past 12 months. As for the next few years, earnings are expected to grow by 15% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 21 Jul 2026UK£159.6bUK£199.2bUK£6.2b14.2x25.7x0.8x
Thu, 18 Jun 2026UK£159.3bUK£198.8bUK£6.2b13.7x25.9x0.8x
Sat, 16 May 2026UK£151.2bUK£198.3bUK£6.1b12.6x24.7x0.8x
Mon, 13 Apr 2026UK£147.9bUK£195.5bUK£6.0b12.4x24.5x0.8x
Wed, 11 Mar 2026UK£141.9bUK£183.1bUK£5.2b14.1x27.3x0.8x
Fri, 06 Feb 2026UK£146.2bUK£181.2bUK£5.3b14.3x27.4x0.8x
Sun, 04 Jan 2026UK£152.4bUK£185.7bUK£5.2b15.3x29.4x0.8x
Tue, 02 Dec 2025UK£152.2bUK£186.2bUK£5.1b15.2x29.8x0.8x
Thu, 30 Oct 2025UK£158.9bUK£183.5bUK£5.0b15.9x31.8x0.9x
Sat, 27 Sep 2025UK£156.1bUK£184.8bUK£5.0b15.2x31.5x0.8x
Mon, 25 Aug 2025UK£159.7bUK£183.8bUK£4.6b15.5x34.4x0.9x
Wed, 23 Jul 2025UK£163.0bUK£183.9bUK£4.9b15.7x33.4x0.9x
Fri, 20 Jun 2025UK£159.0bUK£184.1bUK£4.9b16.9x32.4x0.9x
Sun, 18 May 2025UK£165.3bUK£183.6bUK£4.8b17.2x34.3x0.9x
Tue, 15 Apr 2025UK£150.7bUK£186.0bUK£4.9b15.7x30.9x0.8x
Thu, 13 Mar 2025UK£154.6bUK£186.8bUK£5.5b14.3x28x0.8x
Sat, 08 Feb 2025UK£163.5bUK£190.9bUK£5.4b15.3x30.4x0.9x
Mon, 06 Jan 2025UK£162.4bUK£190.8bUK£5.4b15.8x30.1x0.9x
Wed, 04 Dec 2024UK£168.0bUK£190.2bUK£5.4b16.1x31.1x0.9x
Fri, 01 Nov 2024UK£170.6bUK£189.8bUK£6.0b16.3x28.3x0.9x
Sun, 29 Sep 2024UK£174.6bUK£188.4bUK£6.2b17.5x28.2x0.9x
Tue, 27 Aug 2024UK£170.9bUK£188.8bUK£6.4b16.8x26.9x0.9x
Thu, 25 Jul 2024UK£164.8bUK£191.4bUK£6.2b15.9x26.6x0.9x
Sat, 22 Jun 2024UK£161.8bUK£193.0bUK£6.4b15.5x25.4x0.8x
Mon, 20 May 2024UK£196.2bUK£202.4bUK£5.0b16.3x39.1x1x
Wed, 17 Apr 2024UK£188.2bUK£205.0bUK£5.4b15.7x35.1x0.9x
Fri, 15 Mar 2024UK£192.9bUK£205.1bUK£6.3b15.4x30.5x0.9x
Sun, 11 Feb 2024UK£192.9bUK£204.0bUK£6.3b14.4x30.5x0.9x
Tue, 09 Jan 2024UK£196.7bUK£224.0bUK£6.6b14.4x29.7x0.9x
Thu, 07 Dec 2023UK£191.9bUK£224.2bUK£6.1b12.9x31.5x0.9x
Sat, 04 Nov 2023UK£187.3bUK£223.7bUK£6.1b12.5x30.7x0.8x
Mon, 02 Oct 2023UK£190.4bUK£223.3bUK£5.8b12.6x32.7x0.9x
Wed, 30 Aug 2023UK£195.5bUK£222.5bUK£6.0b12.4x32.4x0.9x
Fri, 28 Jul 2023UK£202.6bUK£214.2bUK£6.4b12.8x31.8x0.9x
Price to Earnings Ratio

31.8x


Total Market Cap: UK£202.6bTotal Earnings: UK£6.4bTotal Revenue: UK£214.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.2x202420252026
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 25.9x which is lower than its 3-year average PE of 30.2x.
  • 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 2.4% 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 Market0.26%
Consumer Discretionary-0.46%
Specialty Stores2.71%
Retail Distributors2.31%
Auto Components0.92%
General Merchandise and Department Stores0.59%
Online Retail and Ecommerce0%0
Leisure-0.38%
Consumer Durables-0.57%
Hospitality-1.30%
Luxury-1.76%
Auto-3.78%
Consumer Services-4.69%
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 77.0%, 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£2.956.2%
+UK£285.5m		6.0%PE20x
WTB WhitbreadUK£24.064.7%
+UK£178.8m		-24.3%PE18.9x
DNLM Dunelm GroupUK£8.788.6%
+UK£140.1m		-26.5%PE11.8x
NXT NEXTUK£148.800.8%
+UK£137.0m		21.5%PE19.1x
JD. JD Sports FashionUK£0.881.9%
+UK£79.8m		2.3%PE9.7x

Latest News

IHG
US$156.70
InterContinental Hotels Group
7D
-4.2%
1Y
35.2%
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.
CPG
US$31.60
Compass Group
7D
-2.1%
1Y
-7.3%
BRBY
UK£10.48
Burberry Group
7D
-3.1%
1Y
-19.8%
VTY
UK£2.69
Vistry Group
7D
6.3%
1Y
-56.2%
WOSG
UK£7.70
Watches of Switzerland Group
7D
2.7%
1Y
114.4%
PTEC
UK£3.68
Playtech
7D
-7.6%
1Y
-4.8%
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£8.78
Dunelm Group
7D
8.6%
1Y
-26.5%
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.
PSN
UK£10.47
Persimmon
7D
-1.9%
1Y
-11.4%
Narrative Update • Jul 08

PSN: Biggleswade Site And 2026 Completions Should Support Premium Earnings Multiple

Persimmon's analyst price target has been trimmed, with recent moves from banks such as Berenberg, Citi, JPMorgan and Morgan Stanley collectively pointing to a reset in fair value to about £16.94 from £18.00. This reflects analysts moderating revenue growth and valuation multiples while allowing for slightly stronger profit margins.
BKG
UK£33.06
Berkeley Group Holdings
7D
-1.4%
1Y
-9.7%
Narrative Update • Jul 07

BKG: Cautious Outlook Will Tighten Margins As Sector Headwinds Persist

The updated narrative on Berkeley Group Holdings reflects a lower analyst fair value estimate of £28.00 per share. This change is influenced by recent cuts to price targets to a range of around £3,000 to £4,100 and more cautious assumptions on revenue, margins and future P/E multiples from analysts.
KGF
UK£2.95
Kingfisher
7D
6.2%
1Y
6.0%
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.
PSON
UK£12.43
Pearson
7D
-5.7%
1Y
19.0%
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.
JD.
UK£0.88
JD Sports Fashion
7D
1.9%
1Y
2.3%
Narrative Update • Jul 06

JD.: Reset Expectations And Margin Improvements Will Support Future Upside

Analysts have trimmed their fair value estimate for JD Sports Fashion by about £0.12 per share, reflecting slightly lower revenue growth expectations, a reduced future P/E assumption, and a lower Street price target range around £0.83 to £0.90 that still factors in improved profit margin forecasts and a somewhat lower discount rate. Analyst Commentary Recent Street research on JD Sports Fashion points to a more cautious but still balanced view, with several large firms highlighting both execution risk and potential support for the share price.
NXT
UK£148.80
NEXT
7D
0.8%
1Y
21.5%
INCH
UK£7.99
Inchcape
7D
2.6%
1Y
2.1%
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£24.06
Whitbread
7D
4.7%
1Y
-24.3%
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.
SSPG
UK£1.85
SSP Group
7D
-4.0%
1Y
5.5%