DFS expects £45m profit despite weaker second half demand
DFS is expecting to post an underlying pre-tax profit of around £45 million for the year to 28 June, in line with its previously upgraded guidance of £43 million to £50 million.
The furniture retailer said its performance was underpinned by 2.7% revenue growth, gross margin expansion and continued cost discipline.
Subscribe to TRBTim Stacey, group chief executive of DFS. said: “Through the year we have made important strategic progress across the business while also delivering a strong financial performance.
“We have navigated the complex and changing market environment focusing on our customer propositions combined with disciplined cost management ensuring that we delivered our upgraded profit expectations despite the market softening in the second half.
“Importantly, a strong profit performance and capital rigour has enabled us to further reduce our net bank debt and improve our leverage position, providing the group with a solid financial foundation to navigate any further market volatility.”
DFS said continued investment in innovation across its platforms and people helped it achieve record customer net promoter scores, alongside strong colleague engagement.
Looking ahead, Stacey said: “We remain firmly committed to our medium term ambitions of £1.4 billion revenue and an 8% PBT margin, and I am confident that our strategy will drive strong shareholder returns as market conditions improve.”
