However, an increase of 7% in first half revenue means that it achieved growth of 1% across the full year.
Consequently, the company said EBITDA for the year will be at the low end of the £82-£87 million range previously given, with revenue impacts being partly offset by cost flexibility and the early benefits of operating efficiency initiatives.
DFS announced in June that revenue in the second half had been weaker than expected owing to significant declines in store footfall and customer orders across April, May and June.
In a pre-close trading update today, DFS said: “We believe this to be an industry-wide issue, resulting from the uncertain economic environment and unexpected general election, exacerbated by warm weather in May and June. Our summer sale, however, started satisfactorily in July, consistent with trends we have seen in offline and online sector indicators.”
Despite the “challenging” UK market, DFS said it remains focused on its growth strategy to deliver substantial long-term returns…