DFS Furniture warns of Brexit product delays

Doncaster-based DFS Furniture on Thursday reported underlying gross sales growth of 10% in a trading update for the five months to December 30, 2018.

However DFS warned that Brexit could cause possible timing delays in delivering its made-to-order products which source material from outside the UK.

In its outlook, DFS said: “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.  

“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. 

“It is worth reiterating that the group has historically capitalised on any adverse trading conditions to build our market position and we continue to believe that our cash generation and long-term growth prospects will drive attractive returns for our shareholders.”

DFS also said its chief financial officer Nicola Bancroft is to retire “from full-time executive roles” after six years with DFS and over 30 years in retailing.

While a succession process is conducted, Mike Schmidt, currently chief development officer, will become interim chief financial officer from April 1, 2019.