Dfs Furniture Share Discussion Threads

[r ball] 15/6/2017 19:26

Avoid. This is not the DFS of old as PE stripped it before float. Slow down/recession coming.

[aim11] 15/6/2017 14:43

definitely an unfortunate trading update but i don't see the point in panicking with everyone else at the stage. Doesn't sound company specific, just a very weak UK trading picture over the crucial Easter bank hol period. The time to panic would have been a few days ago ! :) Last time DFS went through a UK recession, its market share in UK sofas went from 18 to 24%. They have the strongest balance sheet with the most flexibility. Even without a special dividend the yield is 5%.

[buywell3] 15/6/2017 09:55

So MF got it wrong

Retailers are feeling pain now

The Special dividend might get cut

12 months from now DFS could well need that money to survive

dyor

[r ball] 15/6/2017 07:18

Horrible, avoid

[magic] 06/6/2017 00:29

The British Retail Consortium’s study of shops’ sales found growth slowed to 0.2pc on the year, a substantial slowdown from the strong Easter spending in April.

The BRC also found a slide in spending on most other categories, including home accessories, health and beauty, furniture and clothing, matching some parts of Barclaycard’s database

[magic] 02/6/2017 13:33

MOTLEY FOOL

Checking my watchlist of big dividends, I see DFS Furniture(LSE: DFS) as a very nice cash cow, offering tasty dividend yields that should exceed 6% -- shareholders got 5.1% last year, and analysts are expecting 5.9% this year and 6.4% next.

Special dividend
And this year, while lifting its interim dividend by 5.7% (and well ahead of inflation), DFS announced a special dividend of 9.5p per share. Chief executive Ian Filby spoke of the firm's "continued good sales growth and strong cash generation reflecting the successful implementation of our proven growth strategy" and said he expects "long-term profitable growth".

In its current public incarnation, DFS was only floated in March 2015, and just a little over a year later its shares were hammered by the EU referendum result. Since then we've seen a bit of a recovery, but at 275p the price is still up only 8% since the IPO, and I think that's providing a good buying opportunity.

We're looking at forward P/E multiples of around 11.5, and I can't help attributing that in part to weak sentiment surrounding the UK economy and discretionary spending as we hurtle towards Brexit.

But I see it as overdone. DFS is very good at selling its goods, is strongly cash-generative, and has a policy of rewarding shareholders through dividends and share buybacks. It looks like a good time to lock in an attractive long-term yield to me.

hxxp://www.aol.co.uk/money/2017/05/31/two-6-dividends-that-could-help-you-become-a-millionaire/

[aim11] 01/6/2017 09:50

almost anything uk retail related has been terrible, dfs back to 10x now.

[clivell] 01/6/2017 08:50

Got the fall back bit right but never really got a spike!!!

[clivell] 25/5/2017 12:04

I would expect a small spike in the share price next week pre XD date but a fall back shortly afterwards

[aim11] 25/5/2017 08:34

looks like we are just going to trade sideways to the big divi, 13.2p next Thursday ex date. Very disappointing.

[aim11] 13/5/2017 09:12

3 weeks until the big dividend. I also expect DFS to cope well with any broad market slowdown, because they have continually taken market share and online sales are growing strongly. They also will still benefit from the Dwell integration and expansion.

[magic] 11/5/2017 21:01

Thanks. That's useful.

[aim11] 08/5/2017 12:53

most of DFS demand is driven by consumer confidence and credit availability, rather than housing transactions, according to their investor presentation

[clivell] 08/5/2017 12:31

It is also possible "Magic" that people who aren't moving might decide to spruce up their homes and spend money on decor and furnishings. That scenario could help DFS.

[magic] 08/5/2017 11:59

hxxp://www.icis.com/blogs/chemicals-and-the-economy/2017/05/london-house-prices/

Interesting article about significant falls in house prices in central London in the last year. He says oversupply, Chinese reduction in demand and some declustering of financial services will weigh on market.

This could ripple out over time and affect the consumer stocks like DFS.
Still some time to go before that happens IMHO, if it does.

[aim11] 28/4/2017 17:30

decent enough chairman i agree magic, thanks for posting that. i

i think broker consensus already has negative like for like sales in for h2 and for next financial year, so if they have maintained positive LFL and sterling dollar holds up nicely there could be some earnings estimate upside when they report the h2 figures.

[magic] 28/4/2017 17:10

some details on new Chairman

Durant is currently chairman at high-street bakery Greggs and at Capital and Counties Properties.

He has previously been a non-executive director at Home Retail Group, where he chaired the audit and risk committee, and at Greene King, where he was audit committee chairman and a senior independent director.

An accountant by trade, Durant’s executive roles include Liberty International finance director and Thistle Hotels group finance director.

hxxps://www.retail-week.com/sectors/home-and-diy/dfs-unveils-new-chairman-following-bakers-exit/7020535.article

[aim11] 28/4/2017 07:27

New chairman announced, sounds like a strong appointment for DFS. Starts immediately.

[aim11] 27/4/2017 13:04

DFS pre-tax profit is about 65mn. DFS says that GBPUSD rate impacts profit by about 0.5mn for every cent, of which they have mitigated about half or so in the last year. So if we have 1.30 vs 1.20 on GBPUSD its worth c.2.5mn assuming they reverse mitigation, or 5mn extra profit if the mitigation has been other efficiency savings which don't reverse with the currency. I think DFS has been doing a lot of good things behind the scene as you say on Dwell , Sofa W, CDC distribution savings, which we've not really seen yet in the P&L because of FX headwind and also the one-off costs of these CDC changes. As this all starts to reverse i'd expect profit to be well underpinned even assuming some consumer softness.

[dave1975] 27/4/2017 07:17

Dfs has carefully moved a large proportion of its manufacturing to the U.K, Dwell and Sofa Workshop are showing double digit growth and with the pound strengthening this can only be a good thing.

[aim11] 18/4/2017 16:35

Some big volume going through now, and a nice recovery in sterling which will help dfs as most production is still in asia

[aim11] 12/4/2017 16:18

breakout through 260. weather worse over bank holiday is good news for DFS. 13p dividend coming in 6 weeks.

[magic] 11/4/2017 21:41

Suggestion to the DFS Management
A friend of mine said that many look for furniture bearing in mind the dimensions that are needed.

However, there is no search tool on the DFS website to enter a range of dimensions, therefore you haveto go through all furniture to check dimensions individually.

I don't know if the DFS management has looked at this previously and maybe rejected it for some reason. Maybe searching through all furniture items is seen as a positive, but I doubt that is the case for sales.