DFS Furniture shares drop as retailer flags weaker customer footfall

* DFS sees weaker footfall due to adverse weather

* Analysts ​flag ⁠that knock-on effects of Middle East conflict ​may hit big ticket sales

* CEO Tim Stacey warns of potential fuel surcharges (Adds CEO, analyst comment)

March ‌19 (Reuters) - British sofa retailer DFS Furniture on Thursday flagged weaker customer footfall since the start of this ⁠year as bad weather kept shoppers away, sending its ⁠shares 12% lower.

The company, which ​operates 115 stores across the UK and Ireland, kept its profit outlook for the year ending June 29 2026 unchanged, assuming no supply chain disruptions as a result of the Middle ​East conflict.

DFS ‌Furniture said consumer confidence remained "delicately balanced" amid a slowdown in the British economy and persistent inflation and softer footfall from the adverse weather conditions since the first half.

CEO Tim Stacey told analysts that weather-related footfall declines typically reverse once conditions improve. He also ​said that the company faces headwinds from weakened consumer spending, which he said was likely to ‌have been influenced by the Middle East conflict.

A survey published earlier this week showed that a British consumer sentiment index fell ‌to its lowest since early 2025 in March.

"If the knock-on effects of the conflict start to impact day-to-day life (we assume mostly through inflation) then attitudes towards buying a big-ticket item ​may change," Peel Hunt analyst Jonathan Pritchard said.

FUEL SURCHARGES COMING

Stacey told analysts the potential impact from the ‌conflict was hard to determine.

"We haven't seen any disruption and we haven't seen any surcharges coming through just yet, but there could be and we do anticipate at some point fuel ⁠surcharges coming."

"That'll ⁠be a potential for next year, FY2027, very immaterial for ‌this year."

The company said it is hedged on electricity costs up to 2027 and expects exposure to higher ​levels of inflation ​to be limited in full year 2026 as a result.

DFS ‌reported half-year adjusted pretax profit of 30.9 million pounds ($41.01 million), in line with a previous outlook of 30 million to 31 million pounds.

Dfs Furniture Plc