DFS downgrades sales guidance for FY24
The retailer now expects revenues between £1.02bn and £1.04bn, compared with a previous range of £1.06bn and £1.08bn
DFS has downgraded its sales guidance for the year, after reporting that gross sales dropped 5.6% year-on-year during the 26 weeks ended 24 December 2023.
The sofa retailer has attributed its muted performance to “the record hot weather in September and early October when footfall and demand proved to be especially weak”.
The group also revealed that its order intake was also down, slipping 1.1% year-on-year over the period.
As a result, DFS has reduced its full-year sales forecast and expects to “reflect the weaker than expected demand”. The retailer now expects revenues between £1.02bn and £1.04bn, compared with a previous range of £1.06bn and £1.08bn.
However, the group maintains its confidence in delivering its pre-tax profit guidance of £30m to £35m “supported by continued progress on gross margin and cost base improvements”.
Tim Stacey, group CEO of DFS, said: “The group has performed well in tough trading conditions. Despite the weaker than expected market, good operational performance and progress on gross margins and lowering our cost base have enabled us to deliver a profit for the first half that is slightly ahead of the prior year. We remain on track to deliver our full year profit target.
“Looking forward, the group has good growth prospects and is well positioned to drive attractive returns for shareholders, capitalising on market recovery as well as growing our home offering and delivering our 8% PBT target.”
