Furniture seller DFS says weak demand to hit full-year profit

British furniture retailer DFS said its earnings would be at the lower end of forecasts after orders declined from April to June, reflecting an uncertain economic environment, the national election and warm weather.

Ending July 29, the company, which mainly sells sofas, said revenue in its second half fell 4% year-on-year, resulting in growth for the full year of 1%.

As a result, earnings before interest, tax, depreciation and amortisation would be at the low end of its 82 million - 87 million pound ($106-113 million) range, it said on Thursday.

DFS, which sells its own brand, as well as owning Dwell and making sofas under the French Connection name, said back in March that group revenue rose 6.8% to 379.9 million pounds for the first-half period, ending January 28. 

At the time of reporting, the company said that its ‘Exclusive brands’, which include that French Connection licence, saw sales rising by 2% in the period. Online sales rose 13.9%, it said.