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sofa chain Depth FS Furniture companies raised profit forecasts after reporting sales growth and launching key winter promotions.
furniture business, listed on Londonsaid it is “leveraging data” to help drive more orders for its brands.
The report shows that in the six months ended December 28, order volume increased by 2.3% compared with the same period last year, with both DFS and Sofology brands seeing growth.
Total sales, calculated after orders are delivered to customers, are expected to grow nearly 9% for the full year.
DFS told investors that the winter sales trading period began as the company expected.
Promotions and accompanying national marketing campaigns, including television advertising, are a major driver of annual sales for DFS, as it offers discounts on sofas and furniture.
Basic pre-tax profit in the first half is expected to be approximately 30 million to 31 million pounds, an increase of up to 14 million pounds compared with the same period last year.
DFS warned that the macroeconomic and consumer outlook remains difficult to predict after a period of weakness, with widespread reports that consumers are tightening budgets and postponing big purchases.
However, the company said its first-half results and recent trading meant it expected underlying pre-tax profits to be between £43m and £50m this year.
This is higher than the previous forecast of £41m.
DFS CEO Tim Stacey said “leveraging data and leveraging our unique culture” was helping drive more orders for its brands “in a largely flat market.”
“We continue to make good progress in improving gross margin and effectively managing our cost base,” he added.