High Street

DFS shares fall over ‘Brexit uncertainty’ despite sales growth 

Furniture retailer DFS saw shares drop by nearly 4% in early trading today (11 June), despite a 17% increase in like-for-like sales for the year ending 30 June 2019.

It came after the retailer warned investors that it remains “mindful” of the “volatile” political and economic backdrop, and how it may further impact on “already low” consumer confidence levels.

DFS said it also expects to deliver underlying profit before tax slightly above £50m for the 52 weeks to 30 June 2019, relative to £38.3m in the 52 weeks ending 28 July 2018.

A statement by the DFS said: “Our progress in the near term will inevitably be somewhat dependent on this backdrop. In addition, as previously noted, the first half of our 2018/2019 financial year benefited from additional demand from purchases deferred from earlier periods.

“Whilst weak trading environments make it harder to achieve significant levels of revenue growth, our omnichannel consumer offer, showroom sales densities, scale of operations and portfolio of well-recognised brands provide some resilience.”

The retailer has also announced the appointment of Mike Schmidt as its new chief financial officer and as an executive director, effective immediately.

Schmidt joined DFS in March 2014, and prior to his appointment as Interim CFO, Mike served as the retailer’s chief development officer with responsibility for property, strategic development and investor relations activities.

Prior to joining DFS Schmidt previously spent 13 years working for a number of investment banks including UBS and Citi, where he gained experience advising a wide range of consumer-facing companies.

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