DFS Furniture is set to deliver a pre-tax profit “slightly above the top end of guidance” following strong trading and good cost control through the year.
The furniture giant reported its profit for the year to 29 June will sit higher than its initial £29m forecast, rising from £10.5m the year before.
The retailer said that its profit performance had been driven by strong trading, gross margin rate progression and continued cost discipline.
Group order intake was up 10% during the first and second half, with DFS sales up 8.7% and Sofology revenue surging 16.2%.
Gross sales jumped 5.8% year on year, making them lower than its level of order intake due to a shift in customer orders to ranges with longer lead times and the impact of its previous year being a 53 week financial reporting period.
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DFS Group CEO Tim Stacey said: “We are pleased to report that we expect profit for the full year to be slightly above the top end of our guidance.
“Our excellent first half performance set the foundation for our success, with strong trading through the rest of the year with both our DFS and Sofology brands outperforming the market.”
He added: “We have continued to maintain a strong focus on disciplined cost management and improved our gross margins, leading to significant year on year profit growth.
“In addition, cash flow was healthy and our balance sheet is strengthening as we progress towards our target leverage range.”
Looking ahead, Stacey insisted that the brand remained focused on delivering its medium term ambition of £1.4bn sales and 8% pre-tax profit margins.
DFS is set to release its full year results for the period ending 29 June on 25 September.
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