Key points:
- DFS Furniture observing more positive trends
- Says it has seen ongoing evidence of positive market share gains
- DFS shares are up over 4%
DFS Furniture (LON: DFS) is up over 4% in early Friday trading following the company's trading statement.
The share price rise adds to a recent bullish run for the stock, which has gained over 19% in the past month. Although it is still down over 48% in 2022.
DFS told investors in its release that its fiscal 2022 full-year results on September 15 noted that the upholstery market had “softened markedly” since April and had been in significant decline during July and August. However, the company is now observing a more positive trend, with group order volumes growing comparable to FY22 and the pre-pandemic FY19 financial year.
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The furniture company has also seen ongoing evidence of positive market share gains based on the latest Barclays/CACI market data.
DFS stated that its overall performance is in line with its mid-case scenario of approximately £36m profit before tax for the full year, with profits expected to be weighted towards the second half.
The company acknowledged that the macroeconomic outlook is uncertain and inflationary pressures remain high but said its business has proven to be resilient and it is well positioned to maintain its trend of market share gains.
“We are pleased to report that since mid-September, we have seen positive year-on-year order volume growth,” commented Tim Stacey, Chief Executive of DFS.
“While we continue to be watchful of the macroeconomic environment, we continue to take market share and our market leading position, inherent scale and proven strategy give us confidence in our future prospects.”
