DFI shares climb 5.6% as quarterly underlying profit rises
The retailer lifted the lower end of its full-year underlying earnings guidance and committed to a higher dividend payout ratio for FY2027.
DFI Retail Group shares reached US$3.57 at 9.43 am on Oct 27, gaining 5.6 per cent after the retailer reported underlying profit growth of 17 per cent year on year for its third quarter ended Sep 30.
The stock had started trading at US$3.40, compared with the previous close of US$3.38. By 9.43 am, turnover totalled 536,699 shares, worth US$1.9 million.
DFI now expects full-year underlying earnings of US$295 million to US$305 million. Its earlier guidance had put the bottom of that range at US$285 million. The group also committed to raising its dividend payout ratio to 80 per cent in FY2027, from 70 per cent in FY2026.
During the quarter, DFI said it would take over the existing interest held by its restaurant associate Maxim’s in the Starbucks licensed business.
CGS International kept its recommendation at “add”, setting a US$5.50 target price. DBS Group Research retained a “buy” rating and left its target price at US$4.50.
