DFS interim profits and sales surge

DFS interim
// DFS interim pre-tax profits more double from £6.2m to £14.1m.
// EBITDA surged 41.9% year-on-year to £31.5m & group revenue  up 29.1% to £422.3m.
// Results attributed to growth across all four DFS fascias, including recent Sofolofy acquisition

DFS has posted growth in like-for-likes across all four of its brands in its interim results alongside a surge in pre-tax profits.

The homewares and furniture retailer said the results were boosted by its acquisition of Sofology, online sales, and from orders placed by customers who had deferred their purchases due to the unusually hot summer of 2018.

For the 22 week period ending December 30, DFS saw pre-tax profit more than double from £6.2 million to £14.1 million, while operating profit surged 41.9 per cent year-on-year to £31.5 million.

Adjusting the results on a pro-forma basis to also include the results of Sofology, DFS said EBITDA was up 23.8 per cent to £32.8 million while underlying profit before tax and amortisation skyrocketed 83.9 per cent to £16 million.

Meanwhile, group revenue was up 29.1 per cent year-on-year to £422.3 million. On a pro-forma basis, it was up 9.9 per cent.

DFS said order intake in the second half of the financial year has so far been lower than the first half, but its profit expectations for the year was unchanged.

The retailer added that it continued with its Brexit preparations, highlighting consumer confidence and delays at the border as the main risks.

“We are pleased with the performance for the first five months of the financial year across the group, with all four of our brands achieving like-for-like revenue growth,” DFS group chief executive Tim Stacey said.

“The benefits of our investments in our online channels, delivery networks and the development of our brands help mitigate the impact of a market which we expect to remain particularly challenging in 2019 given the current political and economic uncertainty.

“Notwithstanding a softer start to 2019, and assuming no weakening of this environment, our profit expectations for the financial year remain unchanged.”

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