Upholstered furniture retailer DFS has reported another set of record results as both turnover and profits rose in its preliminary results for the 52 weeks ended 30 July 2016.
DFS registered a total sales growth of 7.4% to £980.4m from £913.1m in 2015, with revenue up by 7.1% to £756m. DFS said that online sales continued ‘double-digit’ growth by 15.6%, slowing from its 17.5% growth in 2015.
Underlying EBITDA grew by 5.8% to £94.4m from £89.2m as pre-tax profits surged by 93.6% to £64.5m from £33.3m last year.
During the period DFS maintained its operational strategy, with three new 10-15,000sq ft stores opening in the UK and ROI, bringing the total to 109, whilst confirming that a small DFS store trial opened in Bromley, with a further store in Crawley set to open ‘shortly’.
The development of this smaller store concept is made possible by ‘our market-leading website and innovative “Swoosh” furniture visualisation technology’, said DFS, which features one product on display alongside the screened system.
DFS said that 12 of its co-located Dwell stores are ‘performing strongly’, with the potential for over 40 Dwell stores to be established in other sites, whilst adding that its Netherlands stores – now standing at three – are in line with expectations.
Looking ahead DFS highlighted that trading in the last 14 weeks has ‘not indicated any weakening of demanded to date’, as the impact of the Brexit vote remains unclear.
DFS added that in 2017 there could be an ‘increased risk’ of a ‘market slowdown’ with additional cost pressures from foreign exchange movements and intense competition.
DFS chairman Richard Baker said: “The tried and tested DFS growth strategy has delivered another set of record results and puts us in an excellent position, as the market leader, to continue to generate shareholder value. Our unique and flexible business model, the quality and commitment of our people, our family culture and our focus on customer satisfaction remain the key factors behind our continuing success.”