Sofa specialist retail chain DFS has continued to deliver a ‘strong performance’ in its latest trading update for its financial year ended 30 July 2016.
DFS posted a revenue hike of 7% compared to the second half of last year, with expectations on track to deliver a ‘record performance’ for its full year results towards the ‘upper end’ of the market.
DFS said that revenue growth has benefited from the contributions of the Group’s Sofa Workshop and Dwell subsidiaries, with the company confirming that a Dwell store-in-store concept has been successful, leading to a decision in FY2016 to ‘accelerate’ the programme.
Following the EU Referendum vote, DFS highlighted that the ‘UK faces an increased risk of a market slowdown’ with ‘additional cost pressures from foreign exchange movements’, although it did state that trading post-Brexit has ‘not indicated any weakening of demand’ but admitted that the six weeks since 23 June is ‘too short a period to permit a meaningful assessment’.
Remaining optimistic, DFS concluded: “The Group remains very well positioned to mitigate economic headwinds with resilient features in its operating model giving it the potential to achieve continued growth.”