Furniture retailer DFS says improved trading has continued in recent months following a period of what it had called “exceptionally low demand”.
A trading update from the brand said orders had improved since its 2024 year end in June, with growth over the first 20 weeks of its current financial year – in line with expectations. Bosses said there had been further progress on cost reduction efforts introduced throughout 2024, which have included rigorous review and reappraisal of spending to find £27.5m of efficiencies and get improved operating models, use of artificial intelligence, new procurement activities and use of data.
The latest update to investors follows DFS’ 2024 preliminary results which showed the chain had swung to a pre-tax loss of £1.7m from pre-tax profit of nearly £30m the year before. There had been a 65% drop in underlying profit before tax and brand amortisation to £10.5m.
At the time, the Doncaster-based firm, which operates around 115 showrooms across the country, blamed “extremely challenging global and domestic” markets with “exceptionally low demand”, higher freight costs and interest rates weighing on its bottom line. And within those results, DFS chairman Steve Johnson said the board viewed the recent acquisition of ScS by Italian firm Poltronesofà, and Anglia Home Furnishings’ acquisition by Australian firm Nick Scali Furniture as evidence of confidence in the long term fundamentals of the UK market.
Having highlighted improved trading, DFS also announced the appointment of interim chief financial officer Marie Wall, who will report to CEO Time Stacey. Ms Wall has held senior finance roles at Imperial Brands, Wolseley and Dixons Carphone. She replaces John Fallon who has stepped down from the board and will leave the business in January.
Steve Johnson said: “Marie’s experience and skills make her ideally suited to take on the role of Interim CFO, I am delighted Marie has agreed to join DFS at this key moment for the group.”
Tim Stacey, CEO, said “I am very pleased to welcome Marie to our group. She is a strong addition to our leadership team bringing with her a wealth of financial leadership experience, as we pursue our growth strategy.”
