(Alliance News) - DFS Furniture PLC on Friday said it was more optimistic about its prospects for the rest of the year after seeing sales volumes increase.
The Doncaster, South Yorkshire-based soft furnishings retailer said it had seen a more positive trend in consumer spending since early September, with group order volumes growing relative to the 2022 financial year.
The company added that it had seen continued evidence of positive market share gains, and subsequently expected overall pretax profit of GBP36 million for the current financial year 2023 ending in late June, in line with its mid-case scenario for the full year.
Only two months ago, DFS bemoaned a "significant decline" in orders due to cautious customer spending over the summer. In September, annual profit slumped to GBP58.5 million from GBP102.6 million, as rising bills reduced furniture purchases.
The retailer also noted the impact of "industry-wide Covid-related supply chain issues, double-digit cost inflation on raw materials and ongoing colleague absence and skill shortages".
Looking ahead, DFS expects profits to be weighted towards the second-half, given its current order intake profile.
"We are pleased to report that since mid September we have seen positive year-on-year order volume growth," said Chief Executive Tim Stacey.
"While we continue to be watchful of the macroeconomic environment, we continue to take market share and our market leading position, inherent scale and proven strategy give us confidence in our future prospects."
DFS also confirmed the buyback of GBP25 million shares thus far, as part of a scheme launched in March 2022, which could go up to GBP35 million.
As previously announced, Ian Durant will step down as chair on Friday, to be replaced by Steve Johnson, the current chair of the remuneration committee.
DFS shares were trading 6.4% higher at 132.40 pence each in London on Friday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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