Today in retail: DFS profits dive as big ticket divides

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DFS unveiled an understuffed set of results today, demonstrating growing disparity in the big ticket market.

The sofa retailer reported a 22.3% slump in its full-year pre-tax profit, which it attributed to a deadly cocktail of sourcing costs, consumer uncertainty and a subsequent sales slowdown.

DFS cushioned the blow of its lacklustre results with news that its online and partnership brand sales increased 15.6% and 20% respectively – although overall sales were largely flat year-on-year.

The specialist retailer described the furniture market as “very challenging” in its second half and chief executive Ian Filby had previously said growing consumer uncertainty and subsequent sales declines are “an industry-wide issue”.

However, DFS’ latest results starkly contrasted competitor ScS’ full-year update earlier this week, which saw profits and sales rise ahead of expectations.

These contrasting results from two sofa sellers illustrate the growing disparity in the big ticket market, in which more value-led retailers like ScS are emerging as winners as shoppers tighten their purse strings.

Also today Iceland’s joint managing director Nick Canning has quit the grocer after nearly 15 years and The Hut Group has continued its flurry of acquisitions by snapping up luxury beauty brand Illamasqua.