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UPDATE 1-DFS Furniture flags slower order intake in 2nd half of, keeps outlook

UPDATE 1-DFS Furniture flags slower order intake in 2nd half of, keeps outlook

March 16, 2019
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UPDATE 1-DFS Furniture flags slower order intake in 2nd half of, keeps outlook

by Vicki Horton
March 16, 2019
in Furniture
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March 14 (Reuters) – DFS Furniture Plc on Thursday flagged vulnerable order intake on the begin of the second half of the year after it posted higher profit in the first as it benefited from deferred purchases and greater on-line income. The upholstery retailer said the marketplace would remain “particularly hard” this 12 months, bringing up susceptible client self-belief and challenges springing up from Britain’s drawing close go out from the European Union. Recent surveys confirmed patron confidence hit a 5-year low in January because of Brexit uncertainty. However, patron morale edged up in February with British households showing stoicism. “We observe that yr on year order consumption within the 2d 1/2 of the economic 12 months to this point has been decreasing than the first half,” stated the agency, which is predicated on the UK marketplace for nearly all of its revenue. It also caught to its profit expectations for the monetary 12 months, assuming no also weakening within the surroundings, because it tries to rein in prices.

 

Jefferies analysts stated DFS’s method is handing over effects however it’s miles “tough to keep away from cyclical bumps.” Peel Hunt analysts also subsidized the company’s approach. DFS, which sells sofas, recliners, and beds, stated underlying center income rose 31.7 percent to 32. Eight million pounds ($43.Sixty one million) for the 22 weeks ended Dec. 30, reinforced via deferred purchases from the final area of the previous 12 months because of the new weather at that time and better online income. Shares of the organization were down 2.Three percent at 230 pence in light early trading on Thursday. ($1 = 0.7522 kilos) (Reporting by using Pushkala Aripeka in Bengaluru)

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