Sofa-maker DFS sitting comfortably as sales jump

 
Kasmira Jefford
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DFS has partnered with brands including French Connection (Source: DFS/DearDesigners)

Sofa chain DFS furniture said it remained on track to hit full-year profit expectations after a jump in the sales in the first half of the year.

The Doncaster-based firm, which also trades as Dwell and Sofa Workshop, said all of its brands performed well in the 26 weeks to 30 January, with sales up by seven per cent.

This showed an acceleration in growth on the 12 months to 30 January, when sales rose by five per cent. The company said:

Given broadly stable general macro-economic trends in the UK and all strategic initiatives on track, the board believes that the group is in a strong position to sustain its record of sales growth, market share capture and cash generation.

Based on the trading performance over the first half, our expectations for the group's financial performance in the full year remain unchanged.

DFS, which floated in March last year, opened three stores in the first half including its first shop outside of the UK in the Netherlands. The group also recently opened a smaller concept store in Westfield Stratford, with two more set to open during the second half.

It now operates over 105 stores and plans to open around three to five stores each year over the next few years.

The retailer’s finance director Bill Barnes also announced he will step down this summer after almost 13 years with the group. Nicola Bancroft, who is currently commercial finance director, will take his place.

DFS’s share price, which is up 25 per cent since the IPO, has fallen by nearly two per cent today, suggesting it disappointed investors hoping for an upgrade to forecasts.

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