DFS Furniture has announced its preliminary results for the 52 weeks ended 30 July 2016. Gross were sales up 7.4% to £980.4m, and revenue up 7.1% to £756m. Underlying EBITDA was up 5.8% to £94.4m, with a profit of £64.5m before tax.
This growth is attributed to several initiatives and developments.
DFS reports 35% growth in branded upholstery orders, and its in-store Sofa Workshop ranges are performing well.
Three new 10-15,000 sqft DFS stores opened in the UK and ROI, and Burnley saw the opening of a small store trial opening, with a further store in Crawley to open shortly.
Eleven Customer Distribution Centres were in operation at year end, and the 12 co-located Dwell stores are performing well – according to the retailer, there is “potential for over 40 Dwell stores in total”.
Online, the retailer saw continued double-digit growth in gross sales, profits and site traffic, plus continued strong increases in customer satisfaction scores, with a positive response to the partnership with Team GB for the Rio Olympics from customers and employees.
DFS chairman Richard Baker says: “The tried-and-tested DFS growth strategy has delivered another set of record results and puts us in an excellent position, as the market leader, to continue to generate shareholder value”
CEO Ian Filby adds: “It is naturally pleasing to again report record results that demonstrate the robustness of our business model, the effectiveness of our growth strategy and the excellence of our products and our people. Together these unique assets give DFS the proven ability to achieve consistent outperformance of the retail furniture market over the long-term.”