GENERAL MERCHANDISE NEWS
DFS sees EBITDA rise 17.2% in Q1
14 December, 2012 | by Retail Bulletin
Sofa retailer DFS has reported an increase in sales and earnings in its first quarter as it grew its online business and opened new stores.
In the 13 weeks to 27 October, sales were up 12.3% to £144 million on the same period last year while EBITDA rose 17.2% to £10.2 million.
DFS increased its UK manufacturing, adding another shift at a factory in Derbyshire. The company said its store expansion programme was “on track” and would create 200 jobs this year. DFS will open its second store outside the UK in Cork, Ireland tomorrow.
Commenting on the results, chief executive Ian Filby said: “A good result for the first quarter of 2012/13 continues the positive performance of last year’s second half. Sales have increased by a healthy 12.3% reflecting both an underlying improvement against the relatively weak first quarter last year and the growing contribution from our successful new store opening programme.
“We are simultaneously enhancing our successful and growing online business to offer a fully multi-channel experience including our sofa and room planning app. We opened a new store in Stockport during the first quarter and have since opened a further new store in Stirling, while our second store in the Republic of Ireland will open at Cork tomorrow. Our Cannock store has also relocated to an improved site. We are pleased to be creating an additional 200 jobs through our expansion this financial year.
“Our good performance in the year to date, in what remains a challenging market place, underlines the strength of DFS as the UK market leader in upholstered furniture. We remain confident that we have the right strategy, proposition and team in place to make this another year of exciting progress for DFS.”
