DFS posts record full-year profit and grows market share

DFS notched up EBITDA ahead 4.9% to £86m in the year to July 27, when sales advanced 7.4% to £670.8m.

However, the retailer also warned that the hot weather over the summer hit footfall and orders, which will affect results in the first three months of the new year - that period is traditionally the retailer’s least important.

Chief executive Ian Filby said the full-year performance reflected the strength of the DFS brand, broadening appeal, better service and a growing multichannel offer.

He said: “We have continued to focus on ensuring that DFS offers something for everyone and addresses all sections of the upholstered furniture marketplace to enhance our position as market leader.

“We have been pleased with the positive response to the launch of our new, exclusive ranges of high-quality sofas handcrafted in the UK under the Country Living, House Beautiful and French Connection brands, which is strengthening our appeal to more aspirational consumers.”

Filby was confident about DFS’s prospects. he said: “Our proven strategy and outstanding team of people are the key to DFS’s strong trading record and continued success.

“The performance of our new stores, new products, innovative marketing and expanding multichannel offer enables us to remain confident that DFS will continue to deliver long-term profitable growth as the UK market leader in upholstered furniture.”

The retailer has opened three shops since the start of the new financial year. During the same period DFS launched a new website with better functionality.