DFS Furniture shares have dipped by 22% after the sofa specialist admitted it may have had too many sales in the past.
The company blamed the general election for contributing to a sharp fall in demand in the second half of its financial year, but also admitted that customers may have cottoned on to the idea that if something is permanently on sale, then it isn’t actually on sale.
DFS’ Head of Price Cuts Mrs. Mairi Dundancy said, “the general election and Brexit means people have delayed making big ticket purchases. Alongside that, a sale is supposed to create value for customers by giving them price reductions but some of them are so used to a DFS sale being on that they think our sale price is the actual price, so there’s no urgency to buy. Coupled to the fact that our first ever sale was only supposed to run for 2 weeks and has now been going for approximately 29 years – it’s no wonder we’re in a bit of a pickle.”
The furniture retailer expects its underlying annual profits to be between £82m-£87m, below the £94.4m it reported in the previous 12 months – a difference that is almost exactly equal to the amount of money that has been discounted from products that have been on sale for the past year.
DFS remains confident of longer-term growth and as a result, will continue to maintain its investment levels which will focus on convincing customers that its current prices were at one point in the murky and distant past more expensive, even though no one seems to remember when exactly.
“The relative resilience of the UK in the six months after the Brexit referendum, and comparative slowing thereafter seems to be mirrored in the fortunes of DFS, but unlike the economy, the team that runs DFS know how to navigate through the difficult times. We’ll simply have yet another sale like we always f*cking do!” Mrs. Dundancy added.