Home Business News DFS warns of profits plummeting due to coronavirus outbreak

DFS warns of profits plummeting due to coronavirus outbreak

by LLB Reporter
10th Mar 20 1:20 pm

DFS the sofa retailer has warned the impact of coronavirus has affected their footfall along with political uncertainty.

On Tuesday morning the retailer announced they are unable to provide guidance on full years results over the coronavirus outbreak across the UK.

In the 26 weeks to 29 December gross sales dropped by 5.8% to £626.7m whilst revenue fell by 5.7% to £488m.

Group chief executive Tim Stacey said, “Trading in the second half for the Group has also started satisfactorily with performance in the DFS brand particularly encouraging, with order intake growth year-on-year and good gross margins.

“However, given the uncertainty as to how the current COVID-19 situation will develop it is not possible to give guidance with any certainty for the full-year out-turn.  At present we believe our supply chain position should normalise before the financial year end, and it is only in very recent days that we have observed any change in consumer footfall to our showrooms.

“While any disruption to order intake over the key trading periods of Easter and the May Bank Holidays is likely to impact our financial year 2020 results, it is reasonable to believe this may ultimately be transitory in nature; following periods of subdued demand we typically see much of that latent demand returning.

“Notwithstanding the uncertain short-term outlook, we remain confident in the Group’s financial strength and relative track record of performance in all environments. Furthermore, we believe our leading market position will allow us to drive long term attractive value creation for our shareholders.”

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