DFS warns slow housing market will hit sofa sales

Furniture firm DFS has warned of weaker consumer confidence

Joanna Hodgson26 September 2019

DFS on Thursday posted a sales rise, but the furniture retailer’s boss warned the sluggish housing market is having a “negative drag” on the sofas market.

Chief executive Tim Stacey said: “Many people are waiting for Brexit before committing to house purchases, or hoping there will be stamp duty changes so holding off on buying.”

That means there is a smaller pool of potential customers looking to buy couches for new homes.

Stacey added: “Recent trading conditions have reflected the increasingly uncertain political and economic backdrop, and we have seen reduced levels of footfall across all our brands.”

Shares in DFS fell 2.5p to 224p.

The chief executive was more upbeat as he said revenue in the 48 weeks to June 30 reached £901 million, which was up 3.5% from the prior 52 weeks.

Pre-tax profits fell 13.2% to £22.4 million, but on an underlying basis they jumped 31% to £50.2 million.

The firm benefited from double-digit growth in online sales and improved trading at Sofology, the upmarket retailer it bought in 2017.