DFS Furniture rises 6.7% following trading statement

DFS Furniture rises 6.7% following trading statement

DFS Furniture, a leading UK-based retailer, reported a significant increase in its adjusted pretax profit for the fiscal year ended June 29, 2024. The company's adjusted pretax profit rose to £10.5 million, surpassing its guidance range of £25 million to £29 million. This marked a substantial 20% increase from the previous year, indicating strong financial performance.

The company attributed its improved financials to a 5.8% increase in gross sales and a 10% growth in order intake, driven by both volume and average order value growth. Additionally, DFS Furniture managed to reduce its net bank debt excluding capitalized leases to around £107 million from £165 million at the end of fiscal 2024.

DFS Furniture's CEO commented on the company's position, stating that it is well-positioned to deliver attractive returns for shareholders as the market recovers. The company aims to achieve a medium-term ambition of £1.4 billion in revenue and an 8% pretax profit margin.

The stock price of DFS Furniture rose by 6.7% following the release of its trading statement, reflecting investor confidence in the company's strong financial performance and future prospects.

References:
[1] https://www.marketwatch.com/story/dfs-furniture-adjusted-pretax-profit-rises-76b23771
[2] https://www.retail-week.com/home-and-diy/dfs-to-beat-guidance-following-strong-trading/7049138.article