DFS FURNITURE PLC The sofa specialist saw a drop off in order volumes across the group, in line with data from Barclaycard suggesting a more than two per cent reduction in transactions across the furniture market, relative to pre-pandemic levels.
This reduction in transaction volumes comes despite the group maintaining its recent market share gains.
It also contrasts with a third quarter characterised by high commercial activity, which saw double digit growth in the volume of orders taken across the group relative to pre-pandemic levels.
Despite the slowdown in sales, the
This compares to pre-pandemic fullyear revenues of £996.2m and profit before tax of £50.2m in 2019.
Following payment of the recent £25m special dividend and the ongoing share repurchases, the retailer of living room furniture expects to close the year with a net bank debt position of less than £100m.
Its financial year will conclude on
The company's shares slumped by some 16 per cent yesterday morning, closing the day down by 12 per cent.
It comes as a subdued couple of months of trading for many big ticket sectors has finally caught up with the sofa-seller, according to Peel Hunt's analyst
"A big turndown in demand — we suspect that volumes are down about two to three per cent in the last two months, having been up 10 per cent in March — means that profit numbers are too high," he added.
Despite waning consumer demand, analysts are confident that DFS will be able to make the most of the economic outlook.
"We'd imagine the competition is really struggling and history tells us that DFS emerges from crises stronger," Pritchard added.
(c) 2022 City A.M., source
