Home Money MARKET REPORT: Sofa, as good as DFS challenges the crisis in the retail sector

MARKET REPORT: Sofa, as good as DFS challenges the crisis in the retail sector

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Sitting well: DFS noted that recent improved trading has continued into its latest financial year

The High Street may have suffered an awkward start to the Christmas quarter, but DFS revealed it was doing well.

The furniture retailer bucked the trend by noting that recent improved trading continued into its latest financial year.

In a brief update, the sofa company said the improvement in operations in the final quarter of its last fiscal year continued through the first 20 weeks of the current period.

Orders have continued to grow, in line with their expectations, while further progress has also been made in reducing costs.

DFS accompanied the update with the surprise appointment of Marie Wall, formerly of Imperial Brands, as its interim chief financial officer. Wall joins on December 2, ensuring a smooth transfer by John Fallon, who leaves on January 17.

Analysts at Jefferies raised their price target for DFS to 170p from 140p and repeated a buy rating. The shares rose 1.7 per cent, or 2.2p, to 135p.

Sitting well: DFS noted that recent improved trading has continued into its latest financial year

It came even though official figures yesterday showed retail sales fell in October. Weak data from the United Kingdom raised expectations that the Bank of England could cut interest rates further this year, giving a boost to London benchmarks.

The FTSE 100 closed up 1.4 per cent, or 112.81 points, at 8,262.08, while the FTSE 250 added 1.1 per cent, or 231.77 points, to 20,581.69.

Rate-sensitive housebuilders were in demand: Vistry gained 3 per cent, or 18.5p, to 643p, Berkeley Group advanced 1.6 per cent, or 46p, to 4,322p, and Taylor Wimpey rose 2 per cent, or 2.5p, to 129.65p. .

But banks were weaker amid concerns about a slowdown, with Barclays falling 2.1 per cent, or 5.45 pence, to 257.2 pence and Lloyds falling 1.1 per cent, or 0.6 pence. , at 54.42 pence.

1732313428 851 MARKET REPORT Sofa as good as DFS challenges the crisis

Elsewhere, JD Sports fell 2.1 per cent, or 1.98 pence, to 93.46 pence, after falling on Thursday following a profit warning, when analysts at JP Morgan downgraded their rating on the stock to ” neutral”.

Unilever gained 3.3 per cent, or 150 pence, to 4,692 pence, as the consumer products giant confirmed it remains on track to separate its ice cream business and deliver its productivity boost program by the end of 2025.

On the AIM market, Tavistock Investments rose 11.3 per cent, or 0.4 pence, to 3.95 pence, as the financial advice and investment management provider said it has a substantial level of funding to refocus its activities after two disposals.

Learning Technologies rose 2.3 per cent, or 2.1 pence, to 92.3 pence, as the digital learning and talent management company extended the deadline to December 6 for US private equity team General Atlantic Service announces its intention to bid or withdraw.

Ferro-Alloy Resources gained 3.1 per cent, or 0.2 pence, to 6.7 pence after revealing promising development for its carbon black substitute product, which it believes has significant revenue potential in the sustainable materials market.

But Webis Holdings sank 68.8 per cent, or 0.28 pence, to 0.13 pence as the gaming and technology company announced proposals to delist from AIM, which the company’s board believes will reduce profits. costs and protect shareholder value.

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