UK's Colefax half-year revenue rises 11.7% on strong US sales

Overview

• British furnishing fabrics designer's half-year revenue rose 11.7% yr/yr

• EPS increased 25% yr/yr, driven by strong US Fabric Division sales

• Company returned £6.1 mln to shareholders via share buyback programme

Outlook

• Colefax expects full-year profits to exceed current market forecasts

• Company anticipates challenging Fabric Division sales growth next year

• Colefax plans to invest in US distribution network and fabric brands

Result Drivers

• US SALES - Strong performance in the US Fabric Division, with sales up 18.3% on a constant currency basis, attributed to the robust US stock market

• DECORATING DIVISION - Improved performance with a profit of £351,000, versus a loss of £63,000 in the prior year, driven by project completions

• UK MARKET - Sales in the UK increased by 10.5%, reflecting recovery from weak prior year due to election uncertainty, but high stamp duty remains a challenge

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the home furnishings peer group is "buy"

• Wall Street's median 12-month price target for Colefax Group PLC is GBp870.00, about 13.4% below its January 27 closing price of GBp1,005.00

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nRSb6229Qa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)