DFS has said it expects to deliver underlying profits in line with expectations, assisted by strong sales growth across its brands.
In a trading update, the furniture retailer said it expects to deliver underlying profit before tax “slightly above £50m” for the 52 weeks to June 30, up from £38.3m for the same period the year before.
The retailer reported a 7% rise in gross sales when adjusted to include the acquisition of Sofology.
DFS said cash generation for the period had been “solid”, which led to a “lower average closing monthly net debt” over the last six months.
The furniture retailer also said it was “particularly pleased” with the performance of its ecommerce channel, which saw 17% sales growth.
The retailer noted that Sofology achieved strong like-for-like sales and was “well positioned for the future”.
Despite strong trading, DFS said it was “mindful of the risk that the volatile political and economic backdrop may further impact on already low consumer confidence levels”.
However, even with “weak trading environments”, the retailer said it believes the market will “will return to historical long-term growth rates in due course”.
In the same trading update, it also announced the permanent appointment of Mike Schmidt as chief financial officer and executive director. He had previously been the interim CFO.