DFS continues to expand despite fall in sales
Sofa retailer DFS has reported a fall in first quarter sales as it struggles against a Â“challengingÂ” trading environment.
In the thirteen weeks to 29 October sales fell to £128.2 million from £149.6 million seen in the same period last year. EBITDA was also down, falling to £8.7 million from £15.2 million in 2010.
The retailer said it had created 200 new jobs in the period following the opening of seven new stores. It also plans to create an additional 300 jobs through further store openings.
Commenting on the figures chief executive Ian Filby said: "This investment has been undertaken against a UK retail trading environment that has remained challenging.
"As we anticipated, we have seen a continuation of the weak demand that began in the second half of our last financial year and was particularly evident during August. We also entered the current financial year with a smaller order bank than in 2010, principally as the result of our own work to reduce delivery lead times for our customers."
He added: "Although we expect no early improvement in the trading environment, we are confident that DFS has the right strategy, proposition and team to manage the business through these tough conditions.
"The current investment in new stores and manufacturing will continue to drive our market share and we will also focus on margin, costs and cash generation to deliver a good financial performance over the year as a whole."
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