DFS’s half year sales indicate a healthy uplift amid warnings of a post Brexit market slowdown.
The furniture retailer’s pre-tax profits for the 26 weeks to January 28 saw a three per cent boost to £16.7 million while total revenues rose by seven per cent to £379.9 million.
Gross sales also climbed seven per cent to £493.7 million, bringing the total sales for the year to over £1 billion for the first time in the retailer’s history.
New store openings and a double digit rise in online sales were attributed to the solid results.
DFS’s fascia Dwell opened 15 stores in former DFS warehouse space, alongside two new DFS outlets in south England.
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“Consumer confidence to date has held up well, but we recognise that furniture retailing in the UK faces an increased risk of a market slowdown in 2017 because of the uncertain political and economic outlook,” chief executive Ian Filby said.
“We are taking actions to mitigate these pressures through range management and supplier negotiations, and expect to see further benefits from these initiatives during the second half.
“The flexibility of our cost base, our investments in infrastructure and our vertically integrated business model add to our confidence that we are very well positioned to respond to economic headwinds and cost pressures while continuing to grow our share of the UK retail furniture market.”