DFS Furniture braced investors for a less comfortable time today after cautioning that sales were likely to lose some of their strength.
The Doncaster-based group has seen a “softening” in orders that is likely to cool like-for-like sales after a bright start to the financial year.
Trading on a comparable basis in the first 17 weeks of the period has so far continued last year’s trend and risen 7% on a year earlier.
But executive chairman Graham Kirkham said the trend for like-for-like sales growth towards the end of the first half was now likely to be “slower”.
He added the company had not seen any recent improvement in consumer confidence but still remained optimistic about prospects.
Kirkham said: “I continue to expect that we will achieve further progress in the current year.”
Growth is likely to be sustained by the company’s store opening programme, which will see new outlets in Watford and Birstall, Leeds, open on Saturday and another store in Aberdeen begin trading on Boxing Day.
Two more are planned for Glasgow and Tunbridge Wells later in the financial year, while there are other stores in the pipeline for Cambridge and Carlisle.
DFS, which updated shareholders on trading at its annual general meeting in Doncaster today, has seen its 60 stores deliver strong growth in recent months.
In October, it announced annual underlying pretax profits had surged 7% to £53.6m after the extended Golden Jubilee holiday boosted its performance.
Shares fell 5% following today’s update.
EGi News 03/12/02
