DFS downgrades profit forecast but upgrades stores

Furniture retailer DFS has cut its profit forecast because of the rising costs of expanding its showrooms.

The London Stock Exchange-listed company expects to record between £30m and £35m in pre-tax profit before amortisation over 2022-23, down from an earlier estimate of between £30m to £40m.

Hefty cost rises and pressure to attract price-sensitive customers have reduced profit margins over the past year, the company said yesterday. This included the added expense of improving its warehouses and showrooms.

The sofa seller’s revenue fell 3pc to £545m in the six months to December, but its turnover was 9.4pc higher than pre-pandemic levels.