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U.K. (FTSE) Consumer Discretionary Sector Analysis

UpdatedJan 18, 2026
DataAggregated Company Financials
Companies117
  • 7D-2.5%
  • 3M-2.0%
  • 1Y-2.2%
  • YTD-0.6%

Over the last 7 days, the Consumer Discretionary industry has dropped 2.5%, and Compass Group contributed the most with a 2.3% decline. On the other hand Whitbread is actually up 5.6%. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to grow by 18% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 19 Jan 2026UK£151.6bUK£185.9bUK£5.2b14.9x29.1x0.8x
Wed, 17 Dec 2025UK£151.1bUK£185.8bUK£5.2b15.7x29.1x0.8x
Fri, 14 Nov 2025UK£153.5bUK£184.5bUK£4.9b16x31.2x0.8x
Sun, 12 Oct 2025UK£153.3bUK£182.9bUK£5.0b15.5x30.8x0.8x
Tue, 09 Sep 2025UK£156.1bUK£182.3bUK£4.9b15.8x32.2x0.9x
Thu, 07 Aug 2025UK£160.6bUK£184.0bUK£4.7b15.9x34.2x0.9x
Sat, 05 Jul 2025UK£160.8bUK£183.9bUK£4.9b16.1x32.8x0.9x
Mon, 02 Jun 2025UK£163.6bUK£183.9bUK£4.9b17.4x33.3x0.9x
Wed, 30 Apr 2025UK£155.7bUK£182.1bUK£4.9b16x31.9x0.9x
Fri, 28 Mar 2025UK£152.9bUK£186.6bUK£4.9b15.6x31.4x0.8x
Sun, 23 Feb 2025UK£162.1bUK£189.7bUK£5.4b15.2x30.3x0.9x
Tue, 21 Jan 2025UK£160.2bUK£191.3bUK£5.4b15.6x29.5x0.8x
Thu, 19 Dec 2024UK£165.5bUK£190.0bUK£5.4b15.7x30.8x0.9x
Sat, 16 Nov 2024UK£165.1bUK£189.9bUK£5.7b16.4x29.2x0.9x
Mon, 14 Oct 2024UK£168.1bUK£189.7bUK£6.1b17.5x27.7x0.9x
Wed, 11 Sep 2024UK£170.8bUK£189.2bUK£6.3b16.1x27x0.9x
Fri, 09 Aug 2024UK£164.7bUK£191.9bUK£6.1b15.9x27x0.9x
Sun, 07 Jul 2024UK£160.7bUK£191.8bUK£6.3b16x25.4x0.8x
Tue, 04 Jun 2024UK£192.4bUK£202.3bUK£5.1b16.3x37.9x1x
Thu, 02 May 2024UK£186.5bUK£200.9bUK£5.2b16.1x36.1x0.9x
Sat, 30 Mar 2024UK£195.5bUK£205.0bUK£5.0b15.6x38.8x1x
Mon, 26 Feb 2024UK£193.2bUK£204.0bUK£6.3b15.4x30.6x0.9x
Wed, 24 Jan 2024UK£194.2bUK£223.5bUK£6.6b14x29.6x0.9x
Fri, 22 Dec 2023UK£200.8bUK£224.0bUK£6.6b14.1x30.3x0.9x
Sun, 19 Nov 2023UK£189.4bUK£224.0bUK£6.1b12.6x31.1x0.8x
Tue, 17 Oct 2023UK£185.0bUK£223.6bUK£5.8b12.1x31.9x0.8x
Thu, 14 Sep 2023UK£195.8bUK£222.3bUK£6.1b12.5x32x0.9x
Sat, 12 Aug 2023UK£198.8bUK£217.7bUK£6.1b12.2x32.7x0.9x
Mon, 10 Jul 2023UK£192.1bUK£213.9bUK£6.3b12.7x30.7x0.9x
Wed, 07 Jun 2023UK£202.1bUK£214.4bUK£6.2b14x32.7x0.9x
Fri, 05 May 2023UK£205.2bUK£207.9bUK£6.6b12.7x31.1x1x
Sun, 02 Apr 2023UK£197.5bUK£208.0bUK£7.1b12.2x28x0.9x
Tue, 28 Feb 2023UK£200.3bUK£207.0bUK£8.2b12.7x24.5x1x
Thu, 26 Jan 2023UK£194.8bUK£206.7bUK£8.4b12.6x23.2x0.9x
Price to Earnings Ratio

23.2x


Total Market Cap: UK£194.8bTotal Earnings: UK£8.4bTotal Revenue: UK£206.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Consumer Discretionary Sector Price to Earnings3Y Average 30.6x202420252026
Current Industry PE
  • Investors are relatively neutral on the British Consumer Discretionary industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 30.6x.
  • The industry is trading close to its 3-year average PS ratio of 0.89x.
Past Earnings Growth
  • The earnings for companies in the Consumer Discretionary industry have declined 15% per year over the last three years,
  • Revenues have also declined 3.5% 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 Market1.33%
Consumer Discretionary-2.52%
Auto Components1.54%
Auto1.28%
Retail Distributors0.29%
Leisure0.09%
Online Retail and Ecommerce0%0
Consumer Durables-0.96%
Hospitality-1.83%
Specialty Stores-3.43%
Luxury-3.69%
General Merchandise and Department Stores-4.14%
Consumer Services-9.71%
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 45.0%, 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 78% 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
WTB WhitbreadUK£27.825.6%
+UK£248.5m		-4.7%PE18.7x
PSN PersimmonUK£14.151.3%
+UK£57.7m		17.8%PE17.7x
ATG Auction Technology GroupUK£3.6210.4%
+UK£41.2m		-37.6%PS3.1x
WOSG Watches of Switzerland GroupUK£4.903.6%
+UK£40.3m		-4.8%PE16.7x
IHG InterContinental Hotels GroupUS$138.050.3%
+US$52.8m		9.3%PE27.7x

Latest News

ATG
UK£3.62
Auction Technology Group
7D
10.4%
1Y
-37.6%
IHG
US$138.05
InterContinental Hotels Group
7D
0.3%
1Y
9.3%
DNLM
UK£9.50
Dunelm Group
7D
-18.6%
1Y
-2.4%

DNLM: Margin Outlook And FY26 Guidance Will Support Re Rating Potential

Our updated analyst price target for Dunelm Group moves slightly lower to £12.21 from £12.87 per share, reflecting analysts' more cautious assumptions on discount rate, revenue growth and profit margins, even as recent Street research highlights mixed sentiment with both target raises and a downgrade. Analyst Commentary Recent Street research on Dunelm Group shows a mix of optimism and caution, with several price target changes and at least one rating downgrade.
PSON
UK£9.39
Pearson
7D
-11.4%
1Y
-27.2%
WTB
UK£27.82
Whitbread
7D
5.6%
1Y
-4.7%

Returns On Capital Are Showing Encouraging Signs At Whitbread (LON:WTB)

Jan 15
Returns On Capital Are Showing Encouraging Signs At Whitbread (LON:WTB)
NXT
UK£137.60
NEXT
7D
-4.0%
1Y
47.1%

When Should You Buy NEXT plc (LON:NXT)?

Jan 13
When Should You Buy NEXT plc (LON:NXT)?
YNGA
UK£8.28
Young's Brewery
7D
4.8%
1Y
0%

Is Young's Brewery (LON:YNGA) Using Too Much Debt?

Jan 13
Is Young's Brewery (LON:YNGA) Using Too Much Debt?
VTY
UK£6.52
Vistry Group
7D
-5.0%
1Y
7.4%

VTY: Future Returns Will Likely Stay Capped As Margin Assumptions Weaken

Analysts have nudged their price target for Vistry Group higher, from £5.08 to £5.15. This reflects updated assumptions around revenue growth, profit margin and the future P/E multiple used in their models.
CPG
UK£22.91
Compass Group
7D
-2.3%
1Y
-14.4%

CPG: Strengthened European Platform And Better Returns Profile Should Drive Future Upside

Analysts have inched their blended price target higher to about £31.00 per share, supported by updated assumptions for slightly stronger revenue growth, modestly improved profit margins, and a marginally higher future P/E multiple, which align with recent Street research highlighting a stronger long term growth platform and improved returns profile. Analyst Commentary Recent Street research on Compass Group has focused on fine tuning upside potential and reassessing how much of the long term growth and returns story is already reflected in the share price.
BRBY
UK£12.72
Burberry Group
7D
-4.7%
1Y
28.0%

BRBY: Future Returns Will Depend On Fragile China Luxury Recovery

Analysts have reduced their price target for Burberry Group to £15.70 per share, a £0.30 adjustment that reflects updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions. Analyst Commentary Recent price target moves around £15.50 to £15.70 per share show that research houses are fine tuning their valuation work on Burberry Group rather than making sweeping changes.
PSN
UK£14.15
Persimmon
7D
1.3%
1Y
17.8%

PSN: Contract Discipline And Higher P/E Assumptions Will Support Future Upside

Analysts have nudged their fair value estimate for Persimmon up from £14.63 to about £15.76, citing slightly adjusted assumptions for discount rate, revenue growth, profit margin and future P/E, as they refine their models following recent sector research. Analyst Commentary Recent research on a peer in a different sector highlights how markets can react strongly to contract news and changing expectations, which is useful context when thinking about Persimmon's refined fair value range.
GRG
UK£16.55
Greggs
7D
1.2%
1Y
-25.9%

GRG: Margin And P/E Repricing Will Support Future Upside Potential

Analysts have trimmed their fair value estimate for Greggs from £19.43 to £18.91, reflecting slightly higher discount rates, somewhat softer revenue growth and profit margins, and a marginally higher assumed future P/E multiple. Valuation Changes Fair value estimate reduced slightly from £19.43 to £18.91 per share.
JD.
UK£0.82
JD Sports Fashion
7D
-3.1%
1Y
-4.0%

JD.: Completed £100m Buyback Will Support Medium-Term Shareholder Returns

Analysts have trimmed their price target on JD Sports Fashion to reflect a fair value of £1.15 versus £1.20 previously, citing slightly lower assumptions for revenue growth and profit margins, as well as a modestly higher discount rate, partly balanced by a higher future P/E multiple. What's in the News JD Sports Fashion completed a share buyback program running from August 27, 2025 to December 17, 2025, repurchasing 115,071,637 shares for £100 million, equivalent to 2.24% of its share capital (Key Developments).
WOSG
UK£4.90
Watches of Switzerland Group
7D
3.6%
1Y
-4.8%

WOSG: Future US Deals And Jewelry Alliances Will Shape Balanced Outlook

Analysts have nudged their price target for Watches of Switzerland Group higher to reflect a fair value move from £5.09 to £5.15, tied to updated assumptions on revenue growth, profit margin, and future P/E levels. What's in the News Management is actively seeking acquisitions, with the Group CEO highlighting ongoing efforts to search, negotiate and potentially complete another U.S. deal in the future (Key Developments).
ENT
UK£7.03
Entain
7D
-8.0%
1Y
5.0%

ENT: Future Upside Will Rely On UK Gaming Tax Overreaction Easing

Analysts have adjusted their expectations for Entain, with Street price targets broadly reset in a tighter range. Changes include a revision to £8.32 from £9.17 at HSBC.
DWL
UK£0.94
Dowlais Group
7D
2.7%
1Y
38.6%