DFS unveiled an understuffed set of results today, demonstrating growing disparity in the big ticket market.
The sofa retailer reported a 22.3% slump in its full-year pre-tax profit, which it attributed to a deadly cocktail of sourcing costs, consumer uncertainty and a subsequent sales slowdown.
DFS cushioned the blow of its lacklustre results with news that its online and partnership brand sales increased 15.6% and 20% respectively – although overall sales were largely flat year-on-year.
The specialist retailer described the furniture market as “very challenging” in its second half and chief executive Ian Filby had previously said growing consumer uncertainty and subsequent sales declines are “an industry-wide issue”.
However, DFS’ latest results starkly contrasted competitor ScS’ full-year update earlier this week, which saw profits and sales rise ahead of expectations.
These contrasting results from two sofa sellers illustrate the growing disparity in the big ticket market, in which more value-led retailers like ScS are emerging as winners as shoppers tighten their purse strings.
Also today Iceland’s joint managing director Nick Canning has quit the grocer after nearly 15 years and The Hut Group has continued its flurry of acquisitions by snapping up luxury beauty brand Illamasqua.
Quote of the day
“We both felt that it was the right time for him to move on and seek a fresh challenge, while he is still young and energetic enough to do so.”
- Iceland chief executive Malcolm Walker on Nick Canning’s departure from the grocer
Today in numbers
The amount that Amazon has been ordered to pay in taxes by The European Commission
The fall in DFS’ full-year EBITDA
Look out for our piece on five things retailers can learn from streaming service Netflix
Grace Bowden, reporter