DFS profits on track as half-year sales rise

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Gross sales up 7% in 26 weeks to January 28
Dwell and Sofa Workshop boost group sales
Full-year profits on-track

DFS is confident its full-year profits will be in line with expectations after reporting a solid rise in half-year sales.

The furniture specialist, which floated in 2015, said gross sales rose 7% in the 26 weeks to January.

It said its Dwell and Sofa Workshop divisions ”contributed encouragingly” to overall sales.

However the retailer said it took a hit on margins in the period due to the slump in sterling.

Looking ahead the retailer warned that “in 2017 the retailing of furniture in the UK faces an increased risk of a market slowdown given the uncertain outlook for consumer confidence”.

However DFS said due to a ”resilient operating model” it believed it “remains very well positioned to respond to economic headwinds and cost pressures whilst achieving continued growth in its share of the UK retail furniture market”. As a result full-year profit forecasts remain unchanged.

DFS’s share slumped last month after its biggest shareholder, US private equity group Advent International, sold a 12% stake.