DFS Furniture plc (LSE:DFS) reaffirmed its full-year profit forecast of £43–50 million, even as it reported a recent slowdown in customer visits to its stores following periods of adverse weather after the half-year reporting date.
The furniture retailer recorded first-half revenue of £547.7 million, representing an 8.6% increase compared with the same period a year earlier. Pre-tax profit rose sharply to £31 million, up 82% year on year and broadly consistent with the trading update released in January.
Order intake during the half grew by 2.3%, while gross margin improved by 110 basis points to reach 57.8%. Net financial debt was reduced to £61 million, significantly lower than the £117 million reported in the first half of the previous financial year.
DFS also announced an interim dividend of 1.0 pence per share, compared with no interim payout in the corresponding period last year.
The company said consumer confidence remains fragile and warned that recent geopolitical developments could potentially disrupt supply chains. However, management noted that operations have not yet been affected.
Current guidance for the full year is based on the assumption that supply chains remain broadly stable and do not experience significant disruption.
Leave a Reply