DFS sees sales jump
DFS has seen like for like sales grow by 10% in the past five months.
The group said it had enjoyed growth across all of its brands – DFS, Sofology, Dwell and Sofa Workshop – with total sales up 29% in the five months to 30 December.
Despite the increase it said its full year profit forecast was unchanged.
It said it had been successful in picking up sales that shoppers had put off during the summer, but warned that uncertainty over Brexit could damage sales.
‘While we have achieved a good sales performance, helped by latent demand, we remain cautious around our full-year outlook, and as such our profit expectations for the full year remain unchanged,’ it said.
‘We are mindful of the broader political and economic uncertainty and the further risk this may pose to consumer confidence and lead times for the proportion of our made-to-order products that we source overseas. However, we do expect benefits of previous and ongoing investments in our online activities, our final-mile two-man logistics and the continued integration of Sofology, together with progress being made at Dwell and Sofa Workshop, to help mitigate this challenging market environment.
‘The group has historically capitalised on any 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.’
The group’s cfo Nicola Bancroft is to step down at the end of March, after telling the board she wanted to retire from full-time executive roles after more than three decades in retail.
Mike Schmidt, DFS chief development officer, will become interim cfo from 1 April. ‘Mike has worked with Nicola at DFS in a senior finance and investor relations role for five years and will complete a smooth handover of responsibilities through to the end of the financial year,’ the group said.
‘I want to thank Nicola for her dedication and service during her time with us. Nicola has been instrumental in our continued growth as the largest sofa retailer in the UK and Republic of Ireland. Without her support and contribution, we wouldn't be the strong and successful business that we are today,’ said Tim Stacey, DFS ceo.
‘I feel very privileged to have been part of the DFS growth journey over the last six years and to have worked with so many special people. I am extremely proud of what we have achieved as a team. The group is in a very strong position and I am confident it will thrive in the years ahead,’ said Bancroft.