DFS maintains full year profit guidance despite softer demand
DFS has maintained its full year profit guidance despite sales being hit by weaker than expected demand in the furniture market in the second half of 2023.
Its group order intake fell by 1.1% in the 26 weeks to 24 December, although DFS said this was ahead of the market. It said sales were particularly impacted by record hot weather in September and early October when there was weak footfall and demand.
The retailer has since seen demand recover.
Despite the tougher market conditions, DFS expects to report first-half profit before tax and brand amortisation (PBTu) that is slightly ahead of the prior year. Its full year guidance remains unchanged at £30 million to £35 million for PBTu.
Tim Stacey, DFS group chief executive, said: “The group has performed well in tough trading conditions. Despite the weaker than expected market, good operational performance and progress on gross margins and lowering our cost base have enabled us to deliver a profit for the first half that is slightly ahead of the prior year and we remain on track to deliver our full year profit target.”