Doncaster-based DFS Furniture plc said on Friday it was more optimistic about its prospects for the rest of the year after seeing sales volumes increase.
DFS shares were trading about 5% higher at around £1.31.
In an AGM trading statement, DFS said it had seen a more positive trend in consumer spending since early September, with group order volumes growing relative to the 2022 financial year.
The company added that it had seen continued evidence of positive market share gains, and subsequently expected overall pretax profit of £36 million for the current financial year 2023 ending in late June, in line with its mid-case scenario for the full year.
Only two months ago, DFS bemoaned a “significant decline” in orders due to cautious customer spending over the summer.
In September, annual profit slumped to £58.5 million from £102.6 million, as rising bills reduced furniture purchases.
The retailer also noted the impact of “industry-wide Covid-related supply chain issues, double-digit cost inflation on raw materials and ongoing colleague absence and skill shortages”.
Looking ahead, DFS expects profits to be weighted towards the second-half, given its current order intake profile.
“We are pleased to report that since mid September we have seen positive year-on-year order volume growth,” said DFS CEO Tim Stacey.
“While we continue to be watchful of the macroeconomic environment, we continue to take market share and our market leading position, inherent scale and proven strategy give us confidence in our future prospects.”
Reporter: Holly Beveridge
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