Strong order growth gives DFS boost in full-year results
08:48, 23 September 2021
UK-based furniture retailer DFS has reported a rise in underlying pre-tax profit in its full-year preliminary results as it benefitted from strong order growth.
The company posted on Thursday underlying profit before tax of £105.8m for the year ended 27 June 2021, compared to a £63.1m loss in 2019/20.
It said total group revenue exceeded £1bn for the first time to £1.07bn, compared with revenue of £724m the year before.
New orders, expansion and integration
DFS said growth in new orders in the period was significantly stronger than revenue growth and was driven by market share gains, pent-up demand from ‘lockdown one’, and a shift in consumer spending to the home, with online revenues up 184.3% year-on-year.
The retailer said it also opened five Sofology showrooms during the period, with another eight openings planned for the current financial year.
It also noted the integration of Dwell into its DFS brand operating structure, which it said had increased efficiency and created competitive fulfilment solutions for DFS’s extended homeware offer.
Moreover, the company launched 15 upholstered bed ranges through its DFS brand – and strengthened its beds commercial partnerships, “driving the opportunity to gain share in the £5bn+ bed and non-upholstery living room market”.
Further growth opportunuties
Tim Stacey, group CEO, said: “Our record profits delivery in the last financial year is a fitting tribute to all the hard work of our colleagues and testament to the resilience and flexibility of our integrated business model.
“Despite numerous operational challenges during the pandemic, I’m proud we have remained focused on our strategic agenda to lead sofa retailing in the digital age and are on track to achieve the incremental £40m of profit benefits set out in 2018.”
Stacey also said DFS sees further growth opportunities in the medium term, derived from extending the reach of its retail brands and optimising its operating platforms.
“As we enter a new financial year, the group is very well positioned to build on its market leadership position in sofa retailing and to target further growth as we invest to strengthen our business platforms and extend our retail proposition into adjacent product categories.”
Shares in DFS were up 1.31% in early trade in London on Thursday.
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