UK annual inflation rose to 6.2% in February 2022, the highest level in three decades and above market forecasts of 5.9%. Inflation in Britain showed a gradual month-on-month increase following the Covid-19 pandemic. In January 2022, the reading was at 5.5%, the highest level since March 1992.
The rising cost of energy triggered last month’s spike in inflation due to a record spike in crude oil prices in the international market, mainly due to the ongoing war between Russia and the ‘Ukraine. The furniture and household equipment segment recorded a surprisingly high price increase, which amounted to 9.1% against 8.4% the previous month.
In recent months, the sharp rise in prices for furniture and household equipment had been driven by strong consumer demand after the pandemic. Steadily rising prices could discourage demand growth in the future. However, companies operating in the furniture and home furnishings segment may continue to remain targeted.
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Let’s take a look at the FTSE-listed stocks that operate in the furniture and household equipment segment:
The FTSE100 listed company is one of the largest companies operating in the home improvement and furnishing sector. It is present in eight countries and operates under brands such as B&O, Castorama and many others.
Kingfisher recently announced its final results for the financial year ended 31 January 2022, reporting record sales and profit with market share gains in the UK and France. Its total sales increased by 6.8% to £13,183 million, while its operating profit improved by 24.7% to £1,144 million. Following this good commercial performance, the company launched the fourth tranche of its share buyback program.
Kingfisher Plc closed at 261.60 GBX on March 23, 2022. The stock had a market capitalization of £5,355.63 million.
The company offers various home improvement products such as kitchen cabinets, doors, appliances and many other items. The company’s activities extend to the UK and other European countries.
Howden Joinery is currently carrying out the first tranche of its £250 million share buyback program, which will be open until July 29, 2022. For the 52 weeks to December 25, 2021, the company’s business recorded d excellent numbers. Its total revenue rose 35.3% to £2,093.7 million, with operating profit of £401.7 million.
Howden Joinery Group Plc closed at GBX 801.40 on March 23, 2022. The share had a market capitalization of £4,728.98 million.
The UK-based company designs and manufactures a range of home furnishings products. It sells its inventory through a network of over 200 stores located in the UK and Europe.
DFS Furniture reported total revenue of £561.1 million for the 26-week period to December 26, 2021, while its pre-tax profit was £21.6 million.
DFS Furniture Plc closed at GBX 211 on March 23, 2022. The share had a market capitalization of £545.72 million.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental assessment or technical analysis. Any interest in stocks or sectors should be carefully assessed taking into account the associated risks.