Shares in sofa giant DFS have slipped more than seven per cent after it signalled the market was "challenging" pointing to a triple whammy of an "uncertain economic environment", the unexpected General Election, both of which have been "exacerbated by warm weather in May and June".
Revenue in the second half fell four per cent on the same period last year and compared to a seven per cent ris in the first half of the year. That brought full-year revenue growth to one per cent.
Earnings before tax, depreciation and amortisation is now expected to be at the lower end of the £82m - £87m it had previously forecast.
Why it's interesting
The furniture retailer had warned in June that economic uncertainty would take a toll. The new figures shine more light on just how much.
The £82m - £87m ebitda range was already below market expectations.
What DFS said
"While the UK furniture market is currently very challenging with the outlook still uncertain, we remain focused on our growth strategy to deliver substantial long-term returns for our shareholders. Although revenue growth is likely to be harder to achieve in the short term than in the recent past, we have identified opportunities to drive operating efficiencies and product margin growth.
"We intend to maintain our plans for growth investment, and are confident that this will allow us to continue to outperform the market over the longer term,"