Sofa chain DFS Furniture has lifted its profit outlook after reporting sales growth and launching its important winter promotions.
The furniture business, which is listed in London, said it was “utilising data” to help drive more orders across its brands.
It revealed a 2.3% increase in orders over the six months to December 28, compared with the same period last year, with both the DFS and Sofology brands seeing growth.
Gross sales, which are calculated once orders have been delivered to customers, are expected to be up by nearly 9% across the year.
The winter sale trading period started how the business expected it to, DFS told investors.
Promotions and accompanying national marketing activities, including TV adverts, are a key driving force for DFS’s yearly sales as it offers discounts on sofas and furniture.
Underlying pre-tax profits for the first half are expected to be around £30 million to £31 million, up to £14 million more than the same period last year.
DFS cautioned that the macroeconomic and consumer outlook remains hard to predict after a period of weakness with consumers widely reported to be tightening budgets and holding off on big purchases.
However, it said its first-half performance and recent trading means it is expecting to report an underlying pre-tax profit of between £43 million and £50 million for the year.
This is above the £41 million it was previously forecasting.
Tim Stacey, DFS’s chief executive, said “utilising data and harnessing our unique culture” was helping drive more orders across its brands “in a broadly flat market”.
“We have continued to make good progress growing our gross margins and managing our cost base effectively,” he added.
