DFS Furniture lifts full-year profit outlook, shares surge
surged on Thursday as it lifted its full-year profit outlook following an improved profit performance in the first half.
In the 26 weeks to 29 December 2024, underlying pre-tax profit rose to £17m from £8.7m.
Gross sales ticked up 1.4% to £675.6m and order intake grew 10.1% in a "subdued" market, having fallen 1.1% in the same period a year earlier, with both the DFS and Sofology brands gaining market share.
Revenue dipped 0.1% to £504.5m due to an investment in the company's interest free credit offer to maximise cash gross margins "in a challenging consumer landscape".
DFS said trading through the first 10 weeks of the second half has remained strong, with order intake increasing from the 10% growth achieved in the first half, with its year-to-date order intake now up 11%.
As a result of the continued strong trading, good cost control and assuming no further supply chain disruption, the company expects to outperform consensus expectations and deliver underlying pre-tax profit of between £25m and £29m.
Chief executive Tim Stacey said: "Our improved profit performance in the first half is testament to the strength of our customer proposition, the dedication of our colleagues and our collective focus on operational excellence, evidenced through increased market shares and customer satisfaction scores.
"We are on track to deliver full year profit performance ahead of market expectations and our confidence in the group's capabilities and future potential has never been higher. Given our strong market position and relentless focus on executing our strategy, we are confident that we will achieve our £1.4bn full year revenue and 8% profit before tax targets in the medium term and deliver strong returns for our shareholders."
At 0915 GMT, the shares were up 11.3% at 146p.
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