DFS Furniture PLC Trading Update and Directorate Change (6731M)
10 January 2019 - 6:00PM
UK Regulatory
TIDMDFS
RNS Number : 6731M
DFS Furniture PLC
10 January 2019
10 January 2019 For immediate release
DFS Furniture plc ("DFS" and the "Group")
Interim Trading Update and Directorate Change
A good five month period with underlying sales growth of 10%
DFS Furniture plc, the market leading retailer of living room
and upholstered furniture in the United Kingdom today announces a
trading update for the five month trading period to 30 December
2018.
-- Good underlying gross sales growth of 10% in a challenging consumer environment
-- Like for like growth across all brands and strong 22% growth in online gross sales
-- Our profit expectations for the full-year remain unchanged.
We are however mindful of the risk of near-term political and
economic uncertainty
Good trading performance
Reported gross sales growth of 29% measured against the
comparable trading period in the prior financial year. On an
underlying basis (adjusted to include the acquisition of Sofology
on a pro forma basis) gross sales grew by 10%.
This performance reflects positive like-for-like ("LFL") order
intake growth achieved in each of our DFS, Dwell and Sofa Workshop
retail operations and the strength of our online channels which are
benefiting from sustained investment and development. Sofology has
maintained its solid underlying trading progress with good
like-for-like growth and benefits from five successful new store
openings since the start of the prior financial year. We believe
our trading in this period has seen some benefits from orders
placed by consumers who deferred their purchase decisions from the
fourth quarter of the prior financial year, given the hot weather
at that time.
Outlook
While we have achieved a good sales performance, helped by
latent demand, we remain cautious around our full-year outlook, and
as such our profit expectations for the full year remain
unchanged.
We are mindful of the broader political and economic uncertainty
and the further risk this may pose to consumer confidence and lead
times for the proportion of our made-to-order products that we
source overseas. However, we do expect benefits of previous and
ongoing investments in our online activities, our final-mile
two-man logistics and the continued integration of Sofology,
together with progress being made at Dwell and Sofa Workshop, to
help mitigate this challenging market environment.
It is worth reiterating that the Group has historically
capitalised on any adverse trading conditions to build our market
position and we continue to believe that our cash generation and
long-term growth prospects will drive attractive returns for our
shareholders.
The Group will announce its interim results for the period
ending 30 December 2018 on 14 March 2019.
CFO Succession
After six years with DFS and over thirty years in retailing,
Nicola Bancroft, Chief Financial Officer, has indicated to the
Board of Directors her desire to retire from full-time executive
roles.
While a succession process is conducted by the Board, Mike
Schmidt, currently Chief Development Officer, will become Interim
Chief Financial Officer from 1 April 2019. Mike has worked with
Nicola at DFS in a senior finance and investor relations role for
five years and will complete a smooth handover of responsibilities
through to the end of the financial year.
Commenting on Nicola Bancroft's departure, Tim Stacey, Group
Chief Executive Officer, said:
"On behalf of the Board, I want to thank Nicola for her
dedication and service during her time with us. Nicola has been
instrumental in our continued growth as the largest sofa retailer
in the UK and Ireland. Without her support and contribution, we
wouldn't be the strong and successful business that we are
today."
Nicola Bancroft, Chief Financial Officer, added:
"I feel very privileged to have been part of the DFS growth
journey over the last six years and to have worked with so many
special people.
I am extremely proud of what we have achieved as a team. The
Group is in a very strong position and I am confident it will
thrive in the years ahead."
Enquiries:
DFS (enquiries via Tulchan) Tulchan
Tim Stacey (CEO) James Macey-White
Nicola Bancroft (CFO) Jessica Reid
Mike Schmidt (Chief Development Amber Ahluwalia
Officer)
Liz McDonald (Company Secretary) +44 (0)20 7353 4200
dfs@tulchangroup.com
About DFS Furniture plc
The Group is the clear market leading retailer of living room
furniture in the United Kingdom. We design, manufacture, sell and
deliver to our customers an extensive range of furniture products.
The business operates a retail network of living room furniture
stores in the United Kingdom and Europe, together with an online
channel, trading through four leading brands. The Group has been
established and developed gradually over nearly 50 years of
operating history. We attract customers to our stores and website
through our substantial and continued investment in nationwide
marketing activities and our reputation for high quality products
and service, breadth of product ranges and price points and
favourable consumer financing options.
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END
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