In the current climate shareholders in furniture seller DFS will be sitting fairly comfortably after its latest update.
The more positive trends seen since September speak to the market share gains the company is eking out and suggest that, despite all the pressure on households, some are still prioritising the need for a new sofa.
The robust update unveiled by DFS is particularly impressive when you consider the fate of Made.com.
“With the latest forecasts of a prolonged recession for the UK it seems likely there will be a further deterioration in the outlook but the relatively strong balance sheet at DFS should enable it to weather the storm to come and emerge with an already strong market position significantly enhanced,” said AJ Bell’s Russ Mould.
“It shows that getting the basics of retail can take you a long way, no matter the economic environment. DFS has done a good job of managing its cash flow, stock and, most importantly, getting customers products they want at a price they are prepared to pay.
“That doesn’t mean DFS is immune to the current turmoil but it’s a sign of both the company’s confidence and its financial strength that it is extending a buyback programme launched in March 2022.”