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With a tumultuous 2018, finishing December at £1.83 having climbed from £1.94 to £2.48 in the first half of the year, DFS Furniture shares have gotten off to a superb start to 2019.

Opening at £1.73, it quickly rocketed to an 8 month peak of £2.41 at the end of January, before stalling somewhat across February. DFS Furniture shares now sit at a current trading price of £2.33.

The main reason for that New Year rise was January’s update.

For the 5 month period to 30th December 2018, underlying gross sales were up 10% despite the ‘challenging consumer environment’, with ‘like for like order intake growth across all brands’ and a 22% increase in online gross sales.

Yet, though these figures were more than healthy, DFS said that it remains ‘cautious’ around its full year outlook, the company ‘mindful of the broader political and economic uncertainty and the further risk this may pose to consumer confidence’, alongside the potential impact on leads times for the made-to-order products it sources from overseas.

It did, however, point out that the company has ‘historically capitalised on any adverse trading conditions’ to build its market position, so investors shouldn’t be too worried.

Clearly DFS is very keen to manage investors’ expectations, so it’ll be interesting to see what kind of tone the company strikes on Thursday. As for pre-tax profit, any kind of improvement on the economic anxiety and heatwave hit full year figures will be welcome.

DFS Furniture shares have a consensus rating of ‘Buy’ alongside an average target price of £2.64.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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