DFS Furniture sees profit boost as sofa demand rises

(Reuters) -British sofa retailer DFS Furniture said on Friday it expects strong year-on-year growth in first-half profit, noting that its retail and made-to-order sofa business has outperformed a subdued furniture market.

DFS has also been working to cut costs by resizing its manufacturing operations, working with fewer suppliers, and improving how it handles cancelled or damaged orders.

These efforts, coupled with stronger trading and improved margins, have contributed to a healthy order book that supports profit growth in the first half, it said.

The group’s revenue is generated across two primary retail brands, DFS and Sofology, both of which have outperformed the market, the company said, citing Lloyds banking data.

"Whilst the macroeconomic backdrop remains uncertain in the short term, we will keep focusing on what we can control," said Chief Executive Tim Stacey.

($1 = 0.7451 pounds)

(Reporting by Ankita Bora in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)