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DFS has revealed that it has lowered its full year profit guidance to between £20-£25m after market demands weakened in January and February
Alongside this, the company lowered its revenue guidance down to £1bn-1.15bn, a £60-65m drop.
The company has warned that these ranges do not factor in the risk of delays as a result of the ongoing situation in the Red Sea.
Despite this, the company posted an underlying pre-tax profit of £8.7m for the 26 weeks ended 24 December 2023, an increase of 1.6% year-on-year.
However, the retailer saw its revenue drop 7.2% in the period from £544.5m last year down to £505.1m this year.
Tim Stacey, group CEO, said: “I want to thank our colleagues for their dedication toward providing a first class service to our customers. Whilst the current macroeconomic situation has presented many challenges, we are pleased to have extended our market leadership while reporting a resilient profit performance through the first half.
“As a result of weaker market demand we have lowered our FY24 profit guidance to £20-£25m, excluding the potential risk of Red Sea delays which we continue to monitor closely. This reflects Revenue guidance reducing by £60-65m, partially mitigated by good progress on our Cost to Operate programme.”
He added: “We remain confident in both our long-term growth strategy and the capability to deliver on our objectives. We remain well positioned to improve our profit margins without market recovery and remain confident in delivering our 8% PBT target when the market recovers.”
