- Business Insider
LONDON – Shares in DFS, one of the UK’s biggest furniture retailers, crashed more than 20% after blaming the general election for warning investors on profits.
The company said it saw “significant declines in store footfall leading to a material reduction in customer orders,” blaming “the general election and the uncertain macroeconomic environment.”
“As stated previously, the upholstery market does see short-term demand fluctuations from time-to-time, within an overall historical trend of long-term growth,” DFS said in a statement released to investors on Thursday.
Shares fell as much as 24% before recovering to around a 20% drop.
Here’s the chart as of 8:24 a.m. UK time (3:34 a.m. US time):
Consumer demand is in danger of shrinking further in the UK, spurred by imported inflation from a weak Sterling and falling wages in real terms.
On Wednesday, official figures showed that real wages fell for a third consecutive month. Wages grew by 2.1%, according to the latest data released by the Office for National Statistics, but are being outstripped by inflation at 2.9%.