DFS profits hit by a weaker market
Furniture retailer DFS has seen its revenue from continuing operations fall by 2.2% to £544.5 million in its first half.
In the six month period ending 25 December, pre-tax profit was also down, coming in at £6.8 million compared £22.8 million in the prior year. DFS said this was a reflection of a weak trading environment, particularly in its first quarter.
Profit margins were reduced due to a combination of significant cost increases and the company’s strategy to remain competitive on price.
However, DFS said it achieved a record market share in the period as it worked to broaden its appeal to a wider audience.
Tim Stacey, DFS group chief executive, said: “I’m pleased to report that the group has extended its long track record of achieving market share gains in a challenging market to what are now record levels. We expect our profit for the year to be between £30 million to £35 million in line with external expectations.
“The share gains have gone some way to alleviating the impact of the weaker market we have observed in 2022 overall. Those gains built throughout the period with the group delivering strong order intake growth in the second quarter.”
DFS said its order bank remains elevated and is equivalent to around £4 million of profit, which it expects to realise through its second half. It also expects profit margins to improve from the second half onwards.
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