DFS first half sales up 10.5%
Sofa retailer DFS has reported that its group sales rose by 10.5% in the 26 weeks to end January as it looks towards international expansion.
Group gross sales increased to £431.2 million from £390.1 million in the first half of the previous year.
Meanwhile, group adjusted EBITDA climbed by 16.5% to £27.6 million after adding back non-recurring exceptional expenses related to the company’s IPO and costs related to acquisitions and international expansion, totalling £3.7 million.
DFS chief executive Ian Filby said: “Our recent IPO strengthened our financial position and provides an excellent platform from which to fulfil our vision of taking DFS from being a great British business to a world class business.
“Our continued momentum in the first half of the current financial year has built on the strong performance of the second half last year to deliver a record last twelve months’ result for the group.”
During the period DFS opened four new UK stores and one new store in the Republic of Ireland. It also opened its first Continental Europe store in The Netherlands.
The company said it will expand its UK retail portfolio at an average rate of three to five current format DFS stores a year, with additional Dwell and Sofa Workshop stores. It is also planning to further develop its international presence once concepts are proven.
In the 26 week period, online sales represented 10.9% of group revenue compared to 9.7% in the same period in the previous year.
Filby added: “Although our performance will be measured against stronger comparatives in the second half, we are confident that DFS will deliver in line with market expectations for the current year and enjoys excellent prospects for long term profitable growth as one of the UK’s best-known brands, a major British manufacturer and the country’s leading retailer of upholstered furniture.”
