Doncaster’s DFS Furniture cheered by order intake

Doncaster-based DFS Furniture plc announced that its order intake for the 26-week period to December 25, 2022, was up 10.6% compared to the pre pandemic FY19 period — but down 4.8% on the same period of last year.

In a trading update, DFS reported a strong second quarter performance supported by further market share gains and a “good start to the important winter sale trading period.”

DFS said: “Following low market wide demand levels at the start of the financial year, trading improved in the second quarter with order intake growth relative to FY19 increasing to +16.3% (+18.8% Vs FY22).

“We continue to observe further market share gains based on our proprietary Barclaycard data set.

Group gross sales, which are recognised on delivery of orders to customers, are up +9.6% on the FY19 comparator period (-1.1% Vs FY22).”

In its outlook, DFS said: “Current order intake performance remains strong, with the important winter sale trading period starting well.

“Whilst the macroeconomic and consumer outlook remains hard to predict, our mid case FY23 guidance remains unchanged at £36m profit before tax and brand amortisation, with the range narrowing to £30m-£40m. 

This assumes the improved momentum we have seen in order intake continues through the second half, alongside delivery of planned margin improvements and normalisation of the order bank which remains elevated at the end of the first half due to the weighting of order intake.

“Profit delivery will be second half weighted with first half profits expected to be in mid-single digit £ millions.

We remain committed to our strategy to lead furniture retailing in the digital age.

“Our scale, trusted brands, innovation, final mile two-man logistics platform, digital capabilities and integrated retail strategy give us significant advantages in our market and will allow us to maintain our track record of market share gains whilst driving attractive returns for our shareholders.

The group will announce its interim results for the period ending 25 December 2022 on 16 March 2023.”