DFS Furniture has raised its profit outlook after reporting a rise in orders and the successful launch of its winter sale. The London-listed sofa chain said it was using data to drive more 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. Gross sales, measured once orders are delivered, are expected to rise by nearly 9% over the full year. The winter sale trading period started as expected, the company told investors.
Underlying pre-tax profits for the first half are forecast at £30 million to £31 million, up to £14 million higher than last year. For the full year, DFS now expects underlying pre-tax profit of £43 million to £50 million, above its previous forecast of £41 million.
Despite the positive performance, DFS cautioned that the macroeconomic and consumer outlook remains uncertain, as households continue to tighten budgets and delay major purchases. Chief executive Tim Stacey said the company was making progress in growing gross margins and managing costs effectively.
