Sofa retailer DFS Furniture has raised its profit forecast after reporting a rise in orders and launching its key winter sale. The London-listed company said it was using data analytics to boost orders across its brands, including DFS and Sofology.
Orders increased by 2.3% in the six months to December 28 compared with the same period last year, with both brands contributing to the growth. Gross sales, recorded upon delivery, are expected to rise by nearly 9% over the full year.
The winter sale, supported by national marketing including TV adverts, has started as anticipated, the company told investors. Underlying pre-tax profit for the first half is expected to be between £30 million and £31 million, up to £14 million higher than last year.
DFS cautioned that the macroeconomic and consumer outlook remains uncertain, amid reports of tighter budgets and delayed big-ticket purchases. However, based on its first-half performance and recent trading, the company now expects full-year underlying pre-tax profit of £43 million to £50 million, above its previous forecast of £41 million.
Chief executive Tim Stacey said: 'Utilising data and harnessing our unique culture is helping drive more orders across our brands in a broadly flat market. We have continued to make good progress growing our gross margins and managing our cost base effectively.'
