DFS FURNITURE PLC (LON:DFS) dropped on Tuesday although it remains confident it will meet profit forecasts this year despite the sales dip in the first half.
Market estimates are for annual profits of between £50mln to £53.6mln.
To achieve that, the sofa maker said it will require “low-single digit” sales growth for the rest of the year.
Revenues dropped 6% in the half-year to December in “a challenging consumer environment”, particularly in August and September.
However, orders started to pick up towards the end of the period while the crucial winter sale trading period has started “satisfactorily” with good showroom conversion and online growth.
"It is worth reiterating that the group has historically capitalised on adverse trading conditions to build our market position," said DFS' statement.
“There is still a long way to go in this financial year, but management is comfortable that profit will emerge within the forecasting range,” analysts at house broker Peel Hunt said in a note.
Shares dropped 8% to 257.81p on Tuesday morning.
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