DFS has indicated there may be some green shoots of recovery in the furniture sector after a tough summer, with order volumes strengthening heading into the golden quarter.
In a trading update ahead of its AGM today, the furniture specialist said order volumes had grown relative to full-year 2021 and pre-pandemic 2019 in September and October.
This âpositive trendâ came after DFS had noted the homewares market had âsoftened markedly since April 2022â and been in âsignificant declineâ during July and August.
The retailer said it expected its overall performance to be ÂŁ39m profit before tax for the financial year, which was in line with its mid-case scenario at the beginning of the year.
DFS said it expected profits to be weighted towards the second half âgiven the order intake profile we have seen year to date, our made-to-order business model and revenue being recognised on the delivery of orders to customersâ.
Despite the uncertain economic outlook and continued inflationary environment, DFS said it remained âfocused on executing our strategy to lead furniture retailing in the digital ageâ.
Chief executive Tim Stacey said: âWe are pleased to report that since mid-September we have seen positive year-on-year order volume growth. While we continue to be watchful of the macroeconomic environment, we continue to take market share and our market-leading position, inherent scale and proven strategy give us confidence in our future prospects.â
Ahead of the AGM, the retailer announced it would be extending its share buyback scheme, which began in March, to buy back a further ÂŁ10m worth of shares.
Chair Ian Durant will step down from his role at the AGM and will be replaced by Steve Johnson.
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