DFS sees order uplift in upbeat start to new financial year

The furniture retailer told markets today ahead of its AGM that it has recorded “order intake growth against strong comparatives, and in line with our expectations” during the first 19 weeks of its new financial year. 

The group said that its proprietary banking data indicates that both the DFS and Sofology brands had outperformed the market. 

DFS said that as a result of the trading momentum and cost improvements it had made, which were driving improvements in gross margin, it expected to deliver strong year-on-year profit growth in the first half. 

The retailer said in a statement: “While it’s still relatively early in our financial year and we are mindful of the broader macroeconomic environment and the uncertainty created by the upcoming autumn Budget, we remain comfortable with the range of consensus profit expectations.”

DFS chief executive Tim Stacey said: “By continuing to execute our strategy, we have made a strong start to the year. Despite the upholstery market remaining subdued, we have grown order intake across both our retail brands, ahead of the market, and progressed our gross margin and cost base initiatives, leaving us in a good position to deliver strong first-half year-on-year profit growth.

“Our customer proposition is in great shape and our medium-term outlook remains positive. While the macroeconomic backdrop remains uncertain in the short term, we will keep focusing on what we can control.”