Orders improve at sofa retailer DFS as winter sale begins

Sofa retailer DFS has recorded a rise in orders over the latest quarter, as it hailed improving demand from customers despite pressures from the rising cost of living.

It came as the retailer said that orders dropped 4.8% over the half-year to December 25, compared with the same period last year.

However, the company said this included an 18.8% year-on-year jump in orders over the last three months of the period.

The group saw weak customer demand over the summer period as shoppers cut back on spending for high-ticket items such as furniture.

DFS said demand improved and current order intakes have been “strong”, with the firm’s “important winter sale period starting well”.

As a result, it kept its pre-tax profit guidance unchanged at £36 million for the current year.

DFS said this assumed that “improved momentum” in order numbers will continue throughout the current half-year as it continues to make progress with action to improve profit margins.

Tim Stacey, group chief executive, said: “The group has traded well through the second quarter and the start of the important winter sale trading period.

“Whilst the macroeconomic environment remains challenging and hard to predict, we reiterate our full-year profit guidance supported by the positive current trading momentum.

“As always, we continue to invest for the long term success of the business, to further strengthen our market leading position and with our established platforms, scale and expertise we believe we are well set up for growth over the medium term.”

Shares in the company were 1.4% higher at 161.8p in early trading.