DFS cautions over tough furniture retail sector

Sofa chain DFS has warned over full-year earnings after the recent heatwave dented sales and shipments of made-to-order products from the Far East were hit by delays.

The retailer said it had seen “significantly” lower-than-expected orders in its fourth quarter so far as the hot weather put off customers over key trading weekends.

It also blamed “disruption outside of our control” to ships bringing orders from overseas suppliers.

DFS said total like-forlike sales in the core business were about 3 per cent lower in the 23 weeks to 7 July and around 4 per cent lower in the 49 weeks of the year so far.

The group said that, while cost-cutting would help soften some of the blow, full-year underlying earnings were now expected to be lower than the £82.4 million reported the previous year.

It said: “We continue to expect that the furniture retail market will remain challenging over the next 12 months, given ongoing reduced consumer confidence levels.”