The DFS retail horror show

The DFS retail horror show

Two profit warnings ahead of these numbers from sofa retailer DFS (DFS) meant the market was well aware that trading conditions had deteriorated – hence the relatively modest share price fall accompanying their release. Sales growth all but ground to a halt due to a “very challenging furniture market” during the second half. This, coupled with rising costs, put significant pressure on the gross margin. The resultant 13 per cent fall in cash profits to £82.4m meant the company only just scraped into the lower end of its previous guidance range of £82m-£87m.  

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