DFS hails winter sale for boosting furniture sales
The winter sale trading period started how the furniture business expected it to
British furniture retailer DFS has upgraded its profit forecast, buoyed by robust sales growth and the successful launch of its crucial winter sales period.
The London-listed company attributed this performance to its strategic use of data, which has helped to boost orders across its portfolio of brands.
Over the six months leading up to 28 December, DFS reported a 2.3 per cent rise in orders year-on-year, with both its flagship DFS and Sofology brands contributing to the uplift.
Looking ahead, gross sales – measured upon customer delivery – are projected to climb by almost 9 per cent for the full year.
The retailer informed investors that its vital winter sale trading period commenced in line with expectations.
These promotions, supported by extensive national marketing campaigns including television advertisements, are considered a primary catalyst for DFS’s annual sales, driven by significant discounts on sofas and other furniture.
Underlying pre-tax profits for the first half are expected to be around £30 million to £31 million, up to £14 million more than the same period last year.
DFS cautioned that the macroeconomic and consumer outlook remains hard to predict after a period of weakness with consumers widely reported to be tightening budgets and holding off on big purchases.
However, it said its first-half performance and recent trading mean it is expecting to report an underlying pre-tax profit of between £43 million and £50 million for the year.
This is above the £41 million it was previously forecasting.
Tim Stacey, DFS’s chief executive, said “utilising data and harnessing our unique culture” was helping drive more orders across its brands “in a broadly flat market”.
“We have continued to make good progress growing our gross margins and managing our cost base effectively,” he added.
Bookmark popover
Removed from bookmarks