DFS reports strong sales growth despite tough conditions
SOFA CHAIN DFS Furniture reported underlying sales growth of 10 per cent in the run up to Christmas amid what it said was a challenging consumer environment.
The Doncaster-based firm reported a 22 per cent increase in online gross sales in the five months to December 30 and said it was mindful of the risk of broader political and economic uncertainty.
DFS said its performance reflects positive like-for-like order intake growth in its DFS, Dwell and Sofa Workshop retail operations and the strength of its online channels.
“We believe our trading in this period has seen some benefits from orders placed by consumers who deferred their purchase decisions from the fourth quarter of the prior financial year, given the hot weather at that time,” the group said.
While the firm said it had achieved a good sales performance, helped by latent demand, it said it remains cautious about the full-year outlook.
As a result its profit expectations for the full year remain unchanged.
“We are mindful of the broader political and economic uncertainty and the further risk this may pose to consumer confidence and lead times for the proportion of our made-to-order products that we source overseas,” the firm said.
DFS said it has historically capitalised on any adverse trading conditions to build its market position and that its cash generation and long-term growth prospects will drive attractive returns for shareholders.