DFS reports strong profit uplift
DFS has said its strong first half performance means it expects to report full year profit above market expectations despite a subdued furniture market.
In the six months to 29 December, the retailer’s underlying pre-tax profit almost doubled to £17 million from £8.7 million a year earlier.
Delivered gross sales edged up 1.4% year-on-year, while order intake grew by 10.1% due to a strengthening trading performance throughout the period.
However, revenue was broadly flat due to an investment in an interest free credit offer for customers.
Tim Stacey, group chief executive of DFS, said: “Our improved profit performance in the first half is testament to the strength of our customer proposition, the dedication of our colleagues and our collective focus on operational excellence, evidenced through increased market shares and customer satisfaction scores.”
DFS said it has trading through the first ten weeks of its second half has remained strong, with order intake increasing from the 10% achieved in the first half. This means that its year-to-date order intake is now up 11% year-on-year.
As a result of continued strong trading and cost control initiatives, the retailer expects to deliver a full year underlying profit of £25 million to £29 million, assuming there is no further supply chain disruption.
Stacey added: “We are on track to deliver full year profit performance ahead of market expectations and our confidence in the group’s capabilities and future potential has never been higher.
“Given our strong market position and relentless focus on executing our strategy, we are confident that we will achieve our £1.4 billion full year revenue and 8% pre-tax targets in the medium term and deliver strong returns for our shareholders.”
