DFS blames heatwave for drop in earnings
Furniture retailer DFS has reported a “significantly lower” order intake in its fourth quarter due to the ongoing heatwave affecting trade.
It has also experienced disruption with ships bringing made-to-order products from the Far East.
The news follows orders being ahead of expectations in the previous quarter.
The fourth quarter trading means that total like-for-like revenues within the core DFS business have been around 3% lower year-on-year in the 23 weeks to 7 July 2018, and around 4% lower over the 49 weeks to 7 July 2018.
As a result, DFS is currently expecting EBITDA for the full financial year to be below the prior year’s £82.4 million.
The company said it also expects the furniture retail market to remain challenging over the next twelve months but that investments in its supply chain, the recent acquisition of Sofology, and the expected progress at its Dwell and Sofa Workshop brands will help mitigate this.
It added:”The group has historically capitalised on adverse trading conditions to build our market position and we continue to believe that our cash generation and long-term growth prospects will drive attractive returns for our shareholders.”
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