** Citi says London-listed DFS Furniture's DFSD.L trading update suggests overall UK market may be incrementally more challenging from demand and cost perspective
** DFS expects 2H25 profit to be lower than 1H25, reports group order intake up 10.5% yoy for 26 weeks ending Dec. 22
** Nick Scali NCK.AX entered UK market in April 2024 after acquiring local retailer Fabb Furniture
** Brokerage retains Aussie home furnishing retailer's "buy" rating and target price A$15.31
** Citi expects Nick Scali's near-term UK performance to be driven by self-help initiatives, including refurbishments
** (UK refurbishments)...are also benefiting from Nick Scali's Australian scale which co can leverage for refurbishment pricing - Citi
** Brokerage forecasts UK business EBITDA loss of A$5.1 mln ($3.16 mln) in 1H25 and A$6.8 mln in FY25
** Nick Scali up 0.8% so far this year as of last close, lagging behind a 1.6% rise on the ASX All Ordinaries index .AORD
($1 = 1.6150 Australian dollars)
(Reporting by Nikita Maria Jino in Bengaluru)
((Nikita.Jino@thomsonreuters.com;))
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