// DFS reiterates profit guidance despite struggling with low customer demand
// It reiterated its profit guidance of £36 million for the full year
DFS has reiterated its profit guidance of £36 million for the full year despite previously struggling with low customer demand.
The sofa retailer said consumer demand was currently strong and had improved since the first half of the year thanks to a strong winter sale trading period.
It has reiterated its profit guidance of £36 million for the full year, although narrowed the full range to between £30 million and £40 million.
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For the 26 weeks to December 25, 2022, DFS reported a 4.8% drop in orders from customers year-on-year, but said that in the second quarter of the period that jumped 18.8% on the previous year.
Group gross sales for the period slipped 1.1%, although were up 9.6% on a three-year, pre-pandemic comparison.
“This assumes the improved momentum we have seen in order intake continues through the second half, alongside delivery of planned margin improvements and normalisation of the order bank which remains elevated at the end of the first half due to the weighting of order intake,” DFS said.
DFS chief executive Tim Stacey said: “The group has traded well through the second quarter and the start of the important winter sale trading period.
“Whilst the macroeconomic environment remains challenging and hard to predict, we reiterate our full year profit guidance supported by the positive current trading momentum.
“As always, we continue to invest for the long term success of the business, to further strengthen our market leading position and with our established platforms, scale and expertise we believe we are well set up for growth over the medium term.”
