(Reuters) -International interior designer Colefax Group reported a 15% rise in annual pre-tax profit on Tuesday, mainly boosted by U.S. customers rushing to place fabric orders ahead of tariffs. "
Colefax Group Sees Profit Surge as US Buyers Rush Before Tariffs
(Reuters) -International interior designer Colefax Group reported a 15% rise in annual pre-tax profit on Tuesday, mainly boosted by U.S. customers rushing to place fabric orders ahead of tariffs.
"Whilst our core Fabric Division business continues to perform well, we remain cautious about prospects and in particular the impact of higher tariff costs, a weaker U.S dollar and lower Decorating Division profits," the company said.
WHY IT MATTERS
Colefax sources the majority of its luxury fabrics and wallpapers sold in the United States from international manufacturers, particularly in Europe and India. While the European Union cinched a trade deal over the weekend, the South Asian country is still negotiating with the Trump administration to secure a final agreement.
CONTEXT
A global trade war, triggered by U.S. President Donald Trump's sweeping tariffs on major trading partners, has prompted companies to buy goods before tariffs kick in or raise prices to offset the expected rise in import costs.
The tariffs are currently paused till August 1 to allow time for negotiations.
BY THE NUMBERS
Full-year sales rose 2.6% to 109.99 million pounds ($146.55 million), primarily boosted by a 14% increase in U.S. sales during the final quarter.
Pre-tax profit for the year ended April 30 rose 15.1% to 8.90 million pounds.
MARKET REACTION
Shares of were up 2.6% at 775 pence, as of 0718 GMT.
WHAT'S NEXT
Colefax said accelerated orders continued into its new financial year starting May amid the pause in tariff hikes, but added that it did not believe it is likely to be sustained.
($1 = 0.7505 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Eileen Soreng)
