(Alliance News) - DFS Furniture PLC on Tuesday said interim sales fell but expects full-year results to be in line with expectations, due to a recent uptick in order intake momentum.
The furniture retailer said gross sales for the 26-week period to December 19 were down 6% from a strong comparative 26-week year-earlier figure. It blamed the decline on a challenging consumer environment, particularly in August and September.
DFS didn't provide actual sales figures for either period. A year ago, the company reported gross sales in the 22 weeks to the end of December 2018 of GBP546.5 million, a 29% increase from 2017.
However, DFS said Tuesday it noticed that order intake momentum has recently "strengthened" with a satisfactory start to the winter sales trading period.
Shares in the company were 1.6% down at 275.50 pence each on Tuesday morning in London.
The company said forecast profit before tax and brand amortisation for the financial year ending June 28 remains in line with market expectations at GBP51.2 million, up from GBP50.2 million in financial 2019.
DFS said it is mindful of political and economic uncertainty but reported it has made good progress on driving showroom conversion and online growth as well as putting cost-saving actions in place to help mitigate continued market weakness.
"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," it said.
DFS will publish its full half-year results on March 10.
By Ife Taiwo; ifetaiwo@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Dfs Furn (DFS)