Tuesday 14 January 2020 8:02 am

DFS sales slump but retailer reassures on profit

Furniture retailer DFS reported a dip in sales in the second half of the year following “subdued” trading in August and September. 

The company said gross sales were down six per cent in the 26 weeks to 29 December, “reflecting a challenging consumer environment”. 

Read more: Sofa retailer warns fewer house sales will impact trading

However, the retailer said order intake momentum has strengthened and the key winter sale trading period has started “satisfactorily”. 

In a trading update this morning the firm said it anticipates low single digit revenue growth in the full year, supported by recent trading momentum and new showroom openings.

Full-year pre-tax profit is expected to be in line with market forecasts.

In a statement this morning the company said: “We are mindful of the broader political and economic uncertainty that still exists. 

“However, we have made good progress on our strategic initiatives, driving showroom conversion and online growth. Furthermore, we have appropriate cost saving actions in place to help mitigate continued market weakness.

“It is worth reiterating that the group has historically capitalised on adverse trading conditions to build our market position and we continue to believe that our cash generation and long-term growth prospects will drive attractive returns for our shareholders.” 

The company will publish its interim results for the period ending 29 December on 10 March this year. 

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