DFS boss Ian Filby warned earlier this year that consumer uncertainty, prompted by the Brexit vote, would impact trading.
But a lethal cocktail of unseasonably warm weather, an early Easter and a snap election thrown in for good measure, conspired to wipe around 12% off its EBITDA outlook for the year.
Independent analyst Nick Bubb predicted the profit warning would “go down like a proverbial lead balloon with the City” and, if the battering retail shares have taken since is anything to go by, he’s right.
Amid the post-election fog, at least one thing is certain: if shoppers decide not to part with their hard earned cash for a while, there will be more downgrades to follow.
Elsewhere in the news, JD boss Peter Cowgill – as the newly appointed chairman of fashion retailer Quiz – chose an arguably unfortunate day to unveil plans for a stock market listing on AIM.
Quote of the day
“We have not seen lower growth in the year since April 2013. Increased retail prices across all sectors seem to be a significant factor in slowing growth.”
– ONS senior statistician Ole Black commenting on May’s retail sales
Today in numbers
The jump in first-quarter profits for Zara owner Inditex
Tomorrow, on the day of its AGM, Tesco will issue a first-quarter update.
Emily Hardy, senior reporter