Sofa retailer DFS, has reported financial results “in line with market expectations” just weeks after its IPO.
The Doncaster based retailer increased first-half sales to £431.2m, as it built on the drive generated during 2014.
Britain’s largest sofa seller will continue to expand its UK retail portfolio at an average rate of three to five current format DFS stores a year, with additional Dwell and Sofa Workshop stores, but it doesn’t stop there. Plans are also in place to further develop its international presence once concepts are proven.
Group gross sales for the 26 weeks to 31 January 2015 grew by 10.5% to £431.2m, which included the acquisitions of Sofa Workshop and Dwell. The increase in gross sales for DFS alone was 9.1%
Chief Exec Ian Filby commented:
“Our recent IPO strengthened our financial position and provides an excellent platform from which to fulfil our vision of taking DFS from being a great British business to a world-class business.
Our continued momentum in the first half of the current financial year has built on the strong performance of the second half last year to deliver a record last 12 months’ result for the group.
Although our performance will be measured against stronger comparatives in the second half, we are confident that DFS will deliver in line with market expectations for the current year and enjoys excellent prospects for long-term profitable growth as one of the UK’s best-known brands, a major British manufacturer and the country’s leading retailer of upholstered furniture.”
DFS opened six new stores in the first half to take its portfolio to 105 stores. But only four of those are outside the UK, with three in the Republic of Ireland and one in The Netherlands.
Filby added: “We see significant opportunity to further increase our penetration in the UK, strengthen our established market leadership in online upholstered furniture sales and further develop the DFS brand internationally.
Overall market demand for upholstered furniture in the UK is predominantly driven by prevailing consumer confidence, the level of housing market activity and consumer credit availability.
We continue to see favourable reported trends in key indicators in all three of these market drivers, despite some recent moderation in housing transaction volumes, and the upcoming general election having the potential to create some short term volatility.
We therefore have confidence that our business will continue to benefit over the long term from a growing upholstery market.”