DFS profits hit by summer heatwave
Furniture retailer DFS has reported a decline in full year profit after trading was impacted by a downturn in the furniture market during the summer heatwave.
Group revenue including acquisitions was up 14.1% to £870.5 million in the six months to 28 July, but when acquisitions were excluded sales were down 2% to £747.7 million.
Meanwhile, underlying EBITDA fell by 7.6% to £76.1 million as reported pre-tax profit declined by 48.5% to £25.8 million. Underlying profit before tax and brand amortisation was down 23.7% to £38.3 million.
The retailer opened three standard size DFS shops in the period and piloted some smaller format shops in Chelmsford and Guildford.
Online sales grew by 15.1%.
DFS chief executive Ian Filby said: “We have continued working to develop the group’s strategic and market position; however financial results for the year reflected the exceptional downturn in market demand we saw in the fourth quarter.
“We are pleased to note that the market has recovered since the start of the new financial year, with the group seeing like-for-like order growth across all brands over the first nine weeks.”
