DFS sits comfortably despite slowdown risk

Sofa seller DFS on Thursday stuck to its full-year guidance and plans for a special dividend despite warning of a possible slowdown in its second half.

The retailer, which also owns Dwell and Sofa Workshop and counts gold-winning Olympic gymnast Max Whitlock (pictured) as an ambassador, said sales rose 7% in the six months to January 28.

However it highlighted “increased risk of a market slowdown given the uncertain outlook for consumer confidence” in the UK.

Its margins have already been dented by the pound’s post-Brexit plunge, though it has offset the impact, for example through negotiations with suppliers. It added that its UK manufacturing base and scale remain an important competitive advantage.

The company said it should therefore be able to withstand cost pressures and continue to grow market share in 2017, and made no change to profit guidance. Analysts are expecting full-year pre-tax profit of £64 million.