DFS full year profit to exceed expectations
DFS is expecting its full year profit to be slightly above the top end of its guidance of £25 million to £29 million.
This compares to £10.5 million in the prior year.
In a trading update for the 52 weeks to 29 June, the sofa retailer said the performance was driven by strong trading, gross margin rate progression and continued cost discipline.
After a good first half, order intake increased by 10% year-on-year in the second half despite the market remaining “subdued”.
Subscribe to TRBDFS said both of its retail brands performed well in the year with DFS up 8.7% and Sofology up 16.2%.
Tim Stacey, DFS group chief executive, said: “We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance.
“Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year with both our DFS and Sofology brands outperforming the market.
“We have continued to maintain a strong focus on disciplined cost management and improved our gross margins, leading to significant year on year profit growth. In addition, cash flow was healthy and our balance sheet is strengthening as we progress towards our target leverage range.”
