DFS has reported a decline in sales but should hit earnings expectations despite tough trading conditions.
The sofas giant posted a gross sales decline of 6% in the 26 weeks to December 29.
The retailer said August and September last year were particularly challenging, but “order intake momentum has strengthened more recently, and the key winter Sale trading period has started satisfactorily”.
The retailer reported: ”Based on low single digit revenue growth assumed in the second half we expect full-year profit before tax and brand amortisation will be broadly in line with market expectations.”
DFS said: ”Our expected revenue growth is supported by recent trading momentum and the benefit of opening a number of new group showrooms during the first half.
”We are mindful of the broader political and economic uncertainty that still exists. However, we have made good progress on our strategic initiatives, driving showroom conversion and online growth.
”Furthermore, we have appropriate cost saving actions in place to help mitigate continued market weakness. It is worth reiterating that the group has historically capitalised on adverse trading conditions to build our market position and we continue to believe that our cash generation and long-term growth prospects will drive attractive returns for our shareholders.”
DFS will post interim results in March.
No comments yet