Amanda Holden sofa range lifts DFS as profit jumps
DFS has toasted its partnership with media personality Amanda Holden as the sofa seller saw profits jump by a third.
The London-listed furniture store said its collaboration with the Britain’s Got Talent judge, which includes a range of three Amanda Holden-branded sofas, has lifted its performance.
Steve Johnson, chairman of DFS, said that its partnership with Holden “has ensured our brands remain at the forefront of the consumer’s mind”.
The retailer’s exclusive brand partnerships “continued to resonate” with consumers despite a “subdued demand environment,” the group told shareholders.
DFS’ Amanda Holden range features three sofas: the ‘showstopper,’ the ‘luvvie’ and the ‘olivier’.
“Amanda Holden knows a thing or two about star quality, and this sofa collection is no exception. Each piece in the range oozes glamorous, thoughtful detail,” the sofa seller’s listing for the range says.
DFS posted a 2.6 per cent uplift in revenue to £1bn in the year to June, as its pre-tax profit grew by a third to £43.7m.
Tim Stacey, the group’s chief executive, said: “Upholstered furniture remains the economic engine of the DFS Group.
“Our goal is to protect and extend our clear leadership position in sofas by penetrating underserved customer segments and geographies, expanding exclusive brand partnerships, and sharpening the proposition, range architecture, and customer experience.”
DFS ‘winning market share from all corners’
The furniture retailer also owns sofa brand Sofology, which posted a 2.9 per cent increase in aisles to £306m, outperforming the two per cent growth notched by the core DFS brand.
DFS told shareholders it is also aiming to boost sales of beds, mattresses and dining room furniture as it targets a £5bn share of the home market.
The group said it is also hoping to grow the Sofa Delivery Company, its logistics operation, after allowing third-party retailers to use it for their deliveries for the first time.
DFS said it received “very positive feedback and [has] launched a dedicated portal to seamlessly onboard future partners”. The Sofa Delivery Company delivered £800,000 in sales in the year, the firm said.
The group said it weathered the falling high street footfall caused by the summer’s heatwaves and reiterated its plans to hit £1.4bn revenue in the medium term.
Analysts at Panmure Liberum said DFS delivered “strong” margin performance, adding that the retailer is “in one of its strongest positions to date”.
“There is a lot to like about how DFS is winning market share from all comers. The move into home items gives another growth angle, and we see no reason why it should not achieve its long-term sales and margin targets,” analysts at Peel Hunt said.