DFS warns on profits as summer heatwave hits order intake
StockMarketWire.com - Homeware retailer DFS warned earnings for the full-year would be below the prior year amid delays to made-to-order products from the Far East, and said 'hot weather' in the fourth quarter to date led to 'significantly' lower than expected order intake.
Earnings (EBITDA) for the full financial year is expected below the prior year's £82.4m, DFS said.
The subdued outlook comes as the homeware retailer delivered above forecast year-on-year positive like-for-like orders in the third quarter of the financial year.
For the 23 weeks to 7 July, total like-for-like delivered revenues is expected to fall about 3% from last year, and about 4% in the 49 weeks to 7 July 2018, compared to the same period a year ago.
DFS warned that the furniture market would remain challenging over the next twelve months amid waning consumer confidence levels, but expected recent acquisitions to ease adverse trading conditions.
'Our previous investments in our supply chain and the recent acquisition of Sofology, together with progress expected at Dwell and Sofa Workshop will provide benefits to earnings that we expect to help mitigate the challenging sales environment,' DFS said. At 8:59am: (LON:DFS) DFS Furniture Plc share price was -6.3p at 192.3p
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