DFS prepared for “market slowdown”
DFS is optimistic for its 2017 prospects saying it is “resilient” enough to deal with a projected slowdown in the market.
They said there was an “increased risk of a market slowdown given the uncertain outlook for consumer confidence” but that sales performance was still on track.
It is aiming to increase its market share in the retail furniture market this year.
Gross sales in the 26 weeks to 28 January 2017 grew by 7% and pre-tax profit projections remain unchanged.
The Doncaster-based business said that its Dwell and Sofa Workshop have contributed “encouragingly” to group sales growth and it is well on its way developing the omnichannel proposition.
It said: “As we anticipated at the time of our preliminary results announcement in October, we saw some impact on product margins in the first half from the impact of adverse foreign exchange movements.
“We continue our work to actively offset this impact through range management and supplier negotiations, while the differentiated DFS sourcing model of vertical integration, UK manufacturing capability and superior scale remains an important competitive advantage.
“Overall we believe DFS enjoys excellent prospects to deliver long-term profitable growth, strong cash generation and a progressive dividend policy as one of the UK’s best-known brands, a major British manufacturer and the country’s leading retailer of upholstered furniture.”
