DFS Furniture shares drop 12 percent on weak footfall
DFS Furniture shares fell 12 percent as bad weather reduced store visits. The retailer kept its annual profit outlook steady despite economic headwinds.
DFS Furniture shares fell 12% on Thursday as the retailer reported a decline in customer footfall, citing adverse weather conditions and a cooling economic environment. The company, which maintains a network of 115 stores across the United Kingdom and Ireland, kept its profit outlook for the fiscal year ending June 29, 2026, unchanged, provided there are no supply chain disruptions linked to the Middle East conflict.
Chief Executive Tim Stacey noted that while weather-related dips in store visits are typically expected to reverse, the company is contending with broader pressure on consumer spending. Sentiment in the region has been impacted by persistent inflation and a general economic slowdown, with a recent survey showing consumer confidence at its lowest point since early 2025.
"We haven't seen any disruption and we haven't seen any surcharges coming through just yet, but there could be and we do anticipate at some point fuel surcharges coming."
Peel Hunt analyst Jonathan Pritchard observed that if geopolitical conflicts begin to affect daily life, particularly through increased inflation, consumer interest in high-value purchases may shift. Despite these challenges, DFS Furniture reported a half-year adjusted pretax profit of 30.9 million pounds ($41.01 million), meeting its previous guidance range of 30 million to 31 million pounds.
The retailer has moved to limit its exposure to inflation by hedging electricity costs through 2027. While Tim Stacey anticipates potential fuel surcharges in the future, management expects the impact on the current year to be immaterial, with potential headwinds more likely to affect fiscal year 2027.
