DFS confident for full-year despite fall in sales
In the nine months to 28 April, the retailer’s EBITDA WAS £44.5 million, down from £56.2 million in 2011. Sales were £446.8 million down from £486 million in the previous year.
DFS said the fall in EBITDA included expenses of £3.6 million which had been used to fund new store openings and the expansion of its manufacturing capacity by adding additional production shifts at two of its factories.
The retailer opened 11 new stores in the period, including one in Dublin, and said the store opening programme remained on track despite a "difficult trading environment".
Chief executive Ian Filby said: "As we expected, this has delivered an improving trend in our performance during the year, with the third quarter benefiting from a growing sales contribution from new stores and improved margins as the result of more cost-effective media buying."
"This year's improving trend is expected to continue in the final quarter. Our new stores will continue to make a growing sales contribution, and are expected to contribute to profit in this period.
"We will also continue to benefit from our increased UK manufacturing capacity and improved marketing efficiency. Despite the difficult trading environment for the retail sector, we expect to deliver a robust result for the year."
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