Feb 9, 2017
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DFS first-half sales grow, but margins dented by currency movements

Feb 9, 2017

Furniture retailer DFS revealed on Thursday that its strong FY2015/16 momentum continued into the first half of the current financial year, supported by a measured programme of store expansion and retail openings.


Gross sales for the 26 weeks to 28 January 2017 grew by 7% compared with the prior year’s period. The company said Dwell and Sofa Workshop contributed “encouragingly” to the overall growth.

Since January 2016 the furniture specialist, which is one of the major suppliers of sofas in the UK market, has opened five stores in the UK, and the expansion is expected to continue with a new shop in Kent.

Other factors contributing to the sales performance included strategic initiatives such as continued development of the omnichannel proposition and constant enhancement of the product range, said DFS.

But despite the higher sales, profit margins were negatively impacted in the first half by 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,” said the company in its trading report.

It warned of a potential market slowdown in 2017 due to economic uncertainty and falling consumer confidence, however the group stressed it remains “well positioned to respond to economic headwinds and cost pressures”.

As a result, expectations for the group’s profit before tax in the full year remain unchanged.

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