9th Feb 2017 07:39
LONDON (Alliance News) - Sofa retailer DFS Furniture PLC on Thursday said its sales rose year-on-year in the first half of its financial year, and it remains on track for the full year, adding it will pay a special dividend with its half-year results.
DFS said gross sales in the 26 weeks to January 28% were up 7.0% on the comparable period a year before, helped by contributions from its Dwell and Sofa Workshop businesses.
The company said product margins have suffered from higher input costs as a result of the fall in the value of sterling after the UK's vote to leave the European Union, but DFS said it has continued to mitigate this through range management and by negotiating terms with its suppliers.
Free cash flow has remained strong, DFS said, and it intends to declare a special dividend with its half-year results, due to be released on March 30.
DFS said the furniture retail market in the UK faces an increased risk of a slowdown should the Brexit negotiations hit consumer confidence, but it said its resilient operating model leaves it well-placed to deal with any downturn which may occur.
Consequently, DFS said its expectations for full-year pretax profit are unchanged.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.
Related Shares:
Dfs Furn