DFS reports sales growth but warns on political uncertainty

Furniture retailer DFS has reported underlying gross sales growth of 10 per cent in a trading update this morning as it announced that chief financial officer Nicola Bancroft has stepped down.

The company also reported 22 per cent growth in online gross sales, and maintained its full-year profit expectations.

DFS said trading in the five month period to the end of December had been boosted by customers who deferred their purchase from the fourth quarter of the previous financial year due to hot weather.

However, it warned that the current political and economic uncertainty could impact consumer confidence and products sourced from overseas.

Read more: Revealed: The high street retailers that collapsed in 2018

“While we have achieved a good sales performance, helped by latent demand, we remain cautious around our full-year outlook, and as such our profit expectations for the full year remain unchanged,” the company said.

“We are mindful of the broader political and economic uncertainty and the further risk this may pose to consumer confidence and lead times for the proportion of our made-to-order products that we source overseas.

“However, we do expect benefits of previous and ongoing investments in our online activities, our final-mile two man logistics and the continued integration of Sofology, together with progress being made at Dwell and Sofa Workshop, to help mitigate this challenging market environment.”

Chief development officer Mike Schmidt will take on the finance chief role on a temporary basis following Bancroft’s departure in April.