DFS Furniture FY profits seen 'slightly above' guidance

(Sharecast News) - Retailer DFS Furniture said on Thursday that FY profits were expected to be "slightly above" the top end of guidance on the back of "strong trading and good cost control".

DFS said FY profits were expected to be above guidance of �25.0m to �29.0m and up roughly �20.0m year-on-year, driven by solid trading, gross margin rate progression and continued cost discipline.

The London-listed group also said its strong trading performance had continued in H2, with group order intake up 10% year-on-year, demonstrating "significant outperformance" of a market that "remains subdued".

DFS said both of its retail brands "performed well", with DFS up 8.7% and Sofology up 16.2% year-on-year due to the successful implementation of growth initiatives.

Gross sales were up 5.8% year-on-year, lower than the level recorded in FY24 due to a shift in customer orders to ranges with longer lead times and the impact of the prior year being a 53-week financial reporting period.

Chief executive Tim Stacey said: "We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance. Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year with both our DFS and Sofology brands outperforming the market.

"Looking forward, we are confident that the Group is well positioned to drive attractive returns for shareholders as the market recovers and we remain focused on delivering our medium-term ambition of �1.4bn revenue and 8% PBT margins."

As of 1005 BST, DFS shares were up 5.14% at 173.48p.

Reporting by Iain Gilbert at Sharecast.com