High Street

DFS expects FY22 profits to reach £85m

During the twenty-six week period to 26 December 2021, gross sales increased by 10% when compared with FY19, but were 2% lower than in 2020

DFS Furniture expects to report full-year pre-tax profits of £85m after experiencing strong Christmas sales.

During the twenty-six week period to 26 December 2021, gross sales increased by 10% when compared with FY19, but were 2% lower than in 2020.

Covid-related absences, supplier manufacturing capacity and logistics performance, reportedly affected the retailer particularly in the first quarter. 

However, the group saw a “strong” increase in deliveries across the second quarter, with overall gross sales in Q2 23% higher than in Q1.

Looking forward, as a result of the recent operational investment in The Sofa Delivery Company, combined with new manufacturing partners, the group said it was “confident” that delivery levels will continue to grow across the second half of the year.

Meanwhile, DFS stated it expects to report a closing interim net bank debt position at half year (excluding capitalised leases) in the region of £65 to 70m. 

Tim Stacey, group chief executive, said: “While the market remains hard to predict, we believe our scale, brand strength and integrated retail strategy will allow us to drive market share gains ahead of the competition.

“We will continue to invest in our digital platforms and our showrooms, our delivery network, our UK manufacturing capacity, and with expansion into other home categories, we are well positioned to succeed.”

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